What Apollo Deal Signals About Leveraged Loan Market

The video discusses the complexities of leveraged loans and the challenges banks face due to market volatility. It highlights the shift in investor priorities from high-yield, riskier debt to safer investment-grade bonds. The video also explores the role of distressed buyers in the current market and the impact of changing interest rates on leveraged buyouts.

What is causing banks to offer steep discounts on leveraged loans?

• Increased demand for loans

• Higher current market interest rates

• Decreased borrower interest

• Government regulations

Why are investors shifting their focus from riskier buyout debt to higher-rated debt?

• Government incentives for buyout debt

• Lower yields on investment-grade bonds

• Higher yields on investment-grade bonds

• Increased risk in higher-rated debt

What yield percentage was Citrix priced at?

• 5%

• 12%

• 8%

• 10%

What strategy did Apollo use to fund the equity check for Brightspeed?

• Government funding

• Selling assets

• Using a loan

• Issuing new shares

Who is an example of a distressed buyer mentioned in the transcript?

• BlackRock

• Morgan Stanley

• Elliot

• Goldman Sachs