Apollo 'Pinching Ourselves' Over Juicy Yields, Says Zito

The video discusses the evolution of the credit business over the past 20 years, highlighting the challenges faced during a prolonged period of low interest rates. It explains how returns had to be manufactured through various strategies. The current environment presents new opportunities with higher yields, especially in investment-grade bonds and senior parts of the capital structure, despite existing risks. The speaker emphasizes the unusual situation where high returns are available in the top part of the capital structure, contrasting with equity returns.

What was a significant challenge for employees in the credit business over the past 20 years?

• Building a business with zero interest rates

• Managing a large workforce

• Dealing with high interest rates

• Competing with global markets

Which strategy was commonly used to generate returns in a low-interest environment?

• Manufacturing returns through origination and refinancing

• Focusing on short-term investments

• Investing in high-risk stocks

• Reducing operational costs

What is the current yield on the investment-grade index compared to a year ago?

• Unchanged from last year

• The same as the Triple C index

• Higher than the Triple C index

• Lower than the Triple C index

What is a potential return rate for the top part of the capital structure in the current environment?

• 11-13%

• 5-6%

• 7-8%

• 15-16%

What concern does the speaker express about the current investment environment?

• Equity returns are too high

• Credit returns are too low

• Interest rates are decreasing

• Disparity between equity and credit returns