Rowan notes the 2008 crisis permanently shifted lending activities from banks to nonbank lenders like Apollo.
“You know, the financial crisis in two thousand and eight pushed a lot of activities out of the banking sector and into the nonbank lending sector.”
Rowan says retirement savings companies functioned like banks post-2008, with annuities replacing deposits as liabilities.
“The next best thing was to be a retirement savings company. But where you thought like a bank the liability side of your balance sheet rather than being deposits was annuities.”
Rowan states that global trading capital is now only 10% of 2008 levels.
“That trading capital in the world is 10% today of what it was in 2008.”