The View From Apollo Credit Investing Amid Post “Liberation Day” Uncertainty
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Apr 11, 2025 
Robert Bittencourt, Partner and Co-Head of Opportunistic Credit at Apollo, shares expert insights into the evolving credit markets. He discusses the significant impacts of the Trump administration's trade tariffs on market dynamics and investor confidence. Bittencourt highlights the contrasting stability of investment-grade credits versus the volatility in high-yield segments. He also explores the nuances of payment-in-kind financing, emphasizing its risks during economic uncertainty. Listeners gain valuable perspectives on navigating turbulent financial landscapes and making informed investment decisions.
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Market Response to Tariffs
- Credit markets reacted to the tariff announcements with initial volatility in equities.
- Orderly trading in credit markets shifted to chaotic on Tuesday with spreads widening and underperforming equities.
Reasons for Market Volatility
- The extreme nature of the tariff policy caught markets off guard, leading to significant fluctuations.
- The short implementation window, broad scope, and lack of forethought regarding specific categories contributed to market anxieties.
Current Credit Market Conditions
- Current high-yield credit spreads are in the mid-400s, consistent with long-term averages.
- This suggests a relatively calm outlook on recession implications compared to equity markets.
