Why Apollo's Zelter Is 'Skeptical' of a Soft Landing

The video discusses the disparity between average rates and actual payments, highlighting that companies have already managed their debt. It explains the Fed's transition mechanism aimed at slowing the economy, which is taking longer than expected. The video also covers the US mortgage market and high yield market, noting that the real impact of higher costs has not yet been felt. The speaker expresses skepticism about a soft landing, pointing out tighter financial conditions and a potentially prolonged transition period.

What is the main concern regarding average rates and actual payments?

• Companies have already adjusted their debt, so average rates are not reflective of actual payments.

• Average rates are too high for companies to manage.

• Average rates are decreasing, causing concern.

• Actual payments are higher than average rates due to inflation.

What is the Federal Reserve's expected outcome of the transition mechanism?

• To increase inflation rates.

• To speed up economic growth.

• To stabilize the stock market.

• To slow down the economy.

What is the current state of the US mortgage market as described in the video?

• Mortgages are at a 3% interest rate for 30 years.

• Mortgages are at a 4% interest rate for 20 years.

• Mortgages are at a 5% interest rate.

• Mortgages are at a 7% interest rate for 15 years.

Why is there skepticism about a 'soft landing' in the economy?

• Because financial conditions have tightened and the transition may take longer.

• Because the transition mechanism is expected to be quicker than before.

• Because financial conditions are loosening.

• Because the economy is already in a recession.

What is the expected duration of the transition mechanism compared to the past?

• Shorter than in the past.

• Unpredictable compared to the past.

• The same as in the past.

• Longer than in the past.