Oaktree Capital Management (NYSE: OAK) reported second-quarter results after market close on July 26, turning in a financial performance that was well below last year's record second quarter. But it was also in line with expectations for what CEO Jay Wintrob and chief investment officer Bruce Karsh describe as "late in the credit cycle." In recent years, debt buyers have displayed a much higher tolerance for risk, pushing up the prices they are willing to pay, even for distressed or highly leveraged debt assets.