Odd Lots

Apollo Explains How Big Tech Is Disrupting Credit Markets

21 snips
Oct 14, 2024
In this engaging discussion, Rob Bittencourt, a Partner at Apollo Global Management specializing in opportunistic credit, dives into how tech giants are reshaping credit markets. He explains the shift as major companies seek debt financing to fund AI and infrastructure projects. The conversation highlights the role of private credit in this transition, the impact of government initiatives like the CHIP Act, and the evolving trends in risk assessment within credit investing. Bittencourt also shares insights on how historical market events inform today’s dynamics.
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INSIGHT

Tech's Impact on Credit Markets

  • Tech's impact on credit markets is less discussed than its equity market influence.
  • Capital-intensive tech like AI requires debt financing, creating credit opportunities.
INSIGHT

Tech and Leveraged Loans

  • Historically, tech companies relied less on debt financing.
  • Private equity activity, particularly in software, has increased tech's presence in the levered loan market.
INSIGHT

AI and Private Credit

  • AI's capital-intensive nature, unlike previous tech trends, drives private investment-grade credit opportunities.
  • Apollo sees potential in long-duration, high-quality investments in AI infrastructure.
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