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 are the potential returns for the top part of the capital structure mentioned in the text?

What discrepancy does the speaker highlight between the cost of capital and equity multiples?