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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Assets That Self-Amortize
- Asset-backed finance pools tangible assets that self-amortize and pay contracts over time.
- That structure makes credit more predictable and directly ties lending to everyday economic activity.
Why Asset-Backed Finance Is Hot Now
- ABF is surging because companies shed assets and long-term private capital seeks illiquidity and complexity premia.
- Regulatory changes and stable capital pools are redirecting financing into securitization.
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.
