Rowan says origination strategy earns 150 to 200 basis points premium at near investment-grade level.
“And if you could earn 150 to 200 basis points more in origination at a very safe near investment grade level, that's a business we want to build.”
Rowan explains Athene's growth is limited by assets that earn spread, not by capital or liabilities.
“The growth in the business is not limited by capital. It is not limited by liabilities. It is limited by assets, because it only makes sense to grow if you can earn spread.”
Rowan says institutional money is flowing in and will normalize spreads except for software facing AI disruption.
“Money is coming in institutionally, and it is going to result in reasonably normal spreads for the except with the exception of software, which has nothing to do with public or private.”
Rowan reports consistent spreads of 340 basis points over treasuries at BBB average rating on originations.
“But most importantly, it's coming at consistent spread, three forty basis points over treasuries off an average rating of BBB.”