Rowan says $8 trillion in equity printed since 2008 created a fabulous credit entry point as it's withdrawn.
“Equity we printed $8,000,000,000,000 from 2008 until 2022. Exactly what was supposed to happen happened. Now that we've started withdrawing it, entry point for credit is fabulous, has adjusted very quickly.”
Rowan argues regulators have only two choices for credit: banking system or investment marketplace, no third option.
“And regulators have only two choices as to where credit comes from. It can come from the banking system or it can come from the investment marketplace. There's no third choice.”
Rowan reports Apollo's best year ever with $650 billion AUM, $500 billion in credit.
“Single best year in Apollo's history. Earnings. Asset performance. The our platform as you think about it we are around 650,000,000,000 of assets under management in our asset management business. 500,000,000,000 of that is credit.”
Rowan notes investment grade bonds take five days to sell, predicting poor trading in risk-off moments.
“Takes five days today to sell an investment grade corporate bond. We should expect in every risk off moment public credit to trade poorly.”
Rowan says data center credit should amortize before renewal given strong near-term demand, ensuring safe cash flows for debt repayment.
“Therefore, for the next period of time based on contracts going in today, we should have very safe cash flows in which to amortize credit.”
Rowan announces daily pricing launched July 1 for investment grade fixed income, expanding to all credit by October 1.
“We went live with estimated daily value, estimated daily NAV on sevenone for our entirety of our fixed income investment grade suite of asset products.”