The View From Apollo The Asset-Backed Finance Market Is Having a Moment
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Aug 13, 2025 Bret Leas, Co-Head of Asset-Backed Finance at Apollo, dives into the booming asset-backed finance market. He reveals how this $20 trillion sector thrives even amidst economic challenges, driven by cash-flowing assets. The discussion highlights the surge of activity in 2025, fueled by regulatory shifts and companies shedding assets. Leas emphasizes the importance of discipline for investors and the increasing accessibility of these investments. He also shares personal tidbits, including book recommendations and his passion for Penn State football.
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Starting ABF After The Crisis
- Bret Leas recalls starting Apollo's ABF business in 2009 with a clean balance sheet and no legacy issues.
- That positioning let them buy quality assets cheaply as banks were constrained by regulators.
Resilience In Turbulent Markets
- ABF performs well in volatile, inflationary periods because collateral values can rise and assets self-amortize.
- Rules-based structures and credit enhancement reduce refinancing and management risk.
Balance Portfolios With ABF
- Diversify credit exposure by combining direct lending and asset-backed finance rather than choosing one.
- Use ABF to rebalance portfolios into a much larger, complementary $20T market.
