Apollo Global Management, known for its non -banking loans, is on a bundle of purchase – but not the place you may think of.
Mark Rawan, CEO of the company, said at a phone conference to investors, since Trump’s identification wars have caused the ruin on shares and bonds, the manager of alternative assets was busy placing his extra money at work.
“We believe that we are one of the largest active buyers in postpartum assets, with $ 25 billion in April alone,” Rowan said, referring to President Trump on April 2 of his wide plan to impose taxes on shares.
The largest goal for a private market specialist: The markets circulated publicly, including the bonds, which they seized amid uncertainty about how the customs tariff affects the economy, which leads to a wide spread among what buyers will pay in exchange for a bond and the sellers were ready to accept it.
While the company has long invested in public assets along with its own assets, the last purchase boom is a perception of Rawan’s position for a long time that the bonds are less liquid than private debts during the economic decline.
“There is no liquidity in the constant income markets circulating publicly, as Rawan said, who conducted an interview with the role of the Treasury Secretary during the Trump era.” Consequently, we expect a significant volatility of prices to the extent that public markets are sometimes provided for better returns based on risk compensation than private markets. “
Rawan made comments during the company’s first profit call. The company announced standard records of $ 559 million in fees related to fees, to a large extent on the strength of the hybrid stock fund, although it missed its profits related to the proliferation resulting from its insurance arm, which caused a decrease in the company’s share price by 1.50 % per day 11:50 am
Jim Zellter, President of Apollo, said that recent market fluctuations can be predicted for anyone who pays attention to the Trump administration messages.
He said: “The current administration was clear about its goals before the elections before and after that, while the customs tariff was not a surprise, the scope and approach are clearly defeated.”
Zelter said that Apollo was preparing for this moment, including the company’s position “defensive in anticipation of the market turmoil with dry powder and liquidity to flourish.”
Zelter said that Apollo has the ability to invest her public capital from ATHENE, the fully owned insurance arm of Apollo, which provides guaranteed income products to its customers.
Zelter added: “As a reminder, we manage our business as an investor of equal opportunities with the ability to the axis between primary, private and secondary, which allows us to focus on the most persuaded risks.”
The company has also been occupied in non -bank loans, noting more than 40 lending and direct financing transactions since the start of the identification chaos. Special stock competitors are also lended to net asset values.
With integration and purchases to a large extent, Zelter said that the company sees opportunities to provide capital for companies that cannot be exposed to the public, and to provide liquidity for investors in private money that needs their money now, and works as a source of private capital for companies circulating.
Amid all optimism and opportunities for investment, there were some signs that Apollo still saw a lot of chaos. The company invests the amount of $ 36 billion, which it raised in the first four months of the year to cash, treasury, and agencies, and pay the leverage to prepare.
“This is not without its cost,” Rowan said. “But it puts us well in a volatile market.
