Unhedged What is Apollo, anyway?
5 snips
Sep 17, 2024 
Sujeet Indap, Wall Street editor at the Financial Times, and Eric Platt, senior corporate finance correspondent, dive into the intricate world of Apollo Global Management. They explain how Apollo shifted from traditional asset management to a key player in corporate lending. The duo discusses asset-backed lending, the complexities of new credit dynamics, and the economic implications of changes like telework. They also dissect Boeing's potential despite its challenges and reveal the intriguing future of News Corp amidst its unfolding drama.
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Apollo's Shift
- Apollo, known for leveraged buyouts, has shifted into insurance and annuities.
- This allows them to invest in more diverse and potentially higher-yielding assets.
Why Apollo?
- Apollo uses annuity premiums to invest and generate returns for retirees and themselves.
- Large companies borrow from Apollo for projects that might otherwise affect their credit ratings.
Cost of Capital
- Companies seek to optimize their cost of capital by diversifying funding sources.
- Borrowing too much in bond markets can lead to downgrades and increased borrowing costs.