Marc Rowan on Financial Market Evolution and University Governance
Mar 6, 2024
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Marc Rowan discusses rising interest rates, insurance liabilities, rethinking liquidity, crypto's role in finance, office redesign, young hires criteria, decision-making in debt vs. equity, challenges in India, university governance, running restaurants, and future learning ventures.
Understanding global interest rates impact asset management profitability.
Prioritizing liability management in insurance for retirement services security.
Advocating for improved university governance focusing on critical thinking and viewpoint diversity.
Deep dives
Understanding Global Business Strategies and Investment Insights
Mark Rowan discusses the impact of higher interest rates on asset management, emphasizing the importance of understanding the global business shape and interest rate influence on portfolio profitability. He delves into the significance of maturity matching and asset-liability management, contrasting the practices of asset managers with traditional banking systems.
Innovating Liability Management in the Insurance Industry
Rowan elucidates Apollo's approach to liability management in insurance, highlighting a history of missteps in insurance companies due to poor liability decisions. By focusing on retirement services, Apollo prioritizes ensuring success through annuities and pensions, offering a secure means for individuals to save for retirement.
Evaluating Financial Liquidity and Market Dynamics
Discussing liquidity challenges post-2008 financial crisis, Rowan delves into the evolving financial landscape, emphasizing the transition to less liquid markets. He highlights the impact of Dodd-Frank regulations on trading capital and liquidity, pointing out potential liquidity risks in credit markets.
Resilience in Diversifying Capital Sources
Rowan praises the US financial market's resilience compared to other regions due to its diverse capital sources. He elucidates the importance of dispersing credit risk across various investment channels, citing the impact on banking system leverage and market liquidity.
Educational Leadership and Academic Reform
Reflecting on academic institutions' structural deficiencies, Rowan advocates for strategic guidance and policy clarity within university boards. He critiques traditional academia for its conformity, urging for increased focus on critical thinking, viewpoint diversity, and academic excellence.
Marc Rowan, co-founder and CEO of Apollo Global Management, joined Tyler to discuss why rising interest rates won't hurt Apollo's profitability, why liabilities have traditionally been the weak spot in insurance, why the concept of liquidity needs a rethink, the meaninglessness of the term "private credit", what role crypto will play in American finance, why Marc bought a brutalist apartment, which country has beautiful new neighborhoods, what motivated Apollo's office redesign, what he looks for in young hires, the different kind of decision-making required in debt versus private equity, the biggest obstacle to doing business in India, how university governance can be improved, what he's learned from running restaurants, the next thing he'll learn, and more.