Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
Unlock the editor’s digestion free
FT editor Roula Khalaf, chooses his favorite stories in this weekly newsletter.
Private credit “Not a Bubble,” said Apollo Global Control President Jim Zelter, negative economic conditions in recent years, “Mass losses” in a sector in recent years, he said.
On Thursday, Zelter, who spoke at the HSBC Investment Conference in Hong Kong, asked how Zelter was personal credit would perform in the economic crisis.
“The biggest question I received from anyone in the world is a bubble of private credit?” Zelter said. “And I would say this is not a bubble, but it was too long in the teeth in the period.
“Bubble means very irrational actions and I think I have more aggressive portfolio construction than I think more aggressive portfolio construction, I do not think that you will find mass losses that you have seen in other bubbles.”
Apollo It is dominated by a personal loan, and only traditionally hit the market in recent years, but also gave a great impetus to the world’s largest companies in the market in the market in the market.
Personal credit groups – investors collect funds and earn loans to direct enterprises – increased interest rates increased by investors to their funds. They play a role where banks are kept, which faces hard adjustment.
The IMF, in the report of global financial stability last year, about 2.1tth of private loan assets, which can cause economic benefits and “the current size and coverage has not experienced a serious economic crisis.”
“Such a negative scenario, default and large assessment brand can see a delayed realization of the damages followed by a spike,” he said.
“If the active class remains opacity and continues to grow under limited prudential control, the weakness of the private loan industry may be systematic.”
Zelter, Apollo’s private loan was determined as “something in the balance sheet of the financial institution” and the majority of it is investing, he said. Described the personal loan as “an ocean of $ 40.”
Credit is a “about $ 600 billion job for Apollo,” Zelter is a special capital described as “historical experience”, “about $ 100 billion.”
Zelter in the HSBC event, the global economy said in a global economy “compared to the deflation forces of technology” in the global economy, he said.
“This will be a headline between the next six and 12 to 12, the head of the head will be held in 18 months before the start of the real deflation of the AI,” he said.
