Oaktree’s founder Howard Marks says while Wall Street’s rebound back towards its record high was “troubling”, equity valuations were not yet at a level that would suggest a bubble was starting to emerge.

Marks, speaking from Spain via webcast at the Morgan Stanley conference in Sydney, said stock prices were “lofty but not nutty”, before adding that his $US200 billion ($307 billion) firm saw better opportunities in credit markets, given the uncertain economic backdrop.