📈Higher interest rates benefit Apollo Global Management's credit assets, while the company's equity investments are more focused on managing interest rate risk using fixed rate and hedging instruments.
💼Apollo Global Management's business model involves providing retirement services through annuities and pensions, focusing on long-term low-cost liabilities and originating low-risk, high-yield private credit assets.
🌍Compared to other countries, the US capital market has a diverse range of capital sources, including equity and investor-provided credit. This diversity contributes to the resilience and necessity of the US economy.
💰The success of an insurance or retirement services company requires capital, long-term low-cost liabilities, a scaled low-cost operating infrastructure, and solvency. The ability to earn a spread on assets, manage liabilities, and provide solvency attracts investors.
🌐The impact of the Federal Reserve's monetary policy on the lending market and the overall economy is less direct than before, given the increased role of investors in providing credit. However, the Fed still plays an important role in influencing credit market dynamics.
