Apollo's Zelter Says High-Yield Nearing 10% an 'Attractive Number'

The video discusses the current state of credit markets, highlighting opportunities in both public and private sectors. It examines the attractiveness of high yields and the impact of rapid interest rate changes. The speaker anticipates a default cycle due to economic slowdowns, comparing it to past cycles. The discussion emphasizes the need for strategic investment and patience in navigating these market conditions.

What is one advantage of investing in private credit markets compared to public credit markets?

• Guaranteed returns

• Higher liquidity

• More control over investments

• Lower risk

Why are current yields in public credit markets considered attractive?

• They are approaching 10%

• They are below historical levels

• They are fixed and stable

• They are guaranteed by the government

What has been a significant factor in the rapid changes in the credit market recently?

• Technological advancements

• Decreased consumer spending

• Global political stability

• Historic rate rises

What is a potential consequence of the current economic slowdown and rising interest rates?

• Lower inflation rates

• A default cycle

• A new housing boom

• Increased consumer confidence

How might the upcoming default cycle differ from the one in 2008?

• It will only affect government bonds

• It will be more pervasive

• It will not affect any companies

• It will be less widespread and deep