The little-known asset class providing equity-like returns in uncertain times
If it all feels like the world is standing on a precipice, that’s because in many ways we are. We’ve seen extraordinary shifts in the macro environment in the past few years and Apollo Global Management’s Eric Hanno believes investors will need to start thinking about risk in a way they haven’t for a long time.
That is, with rates no longer at historic lows and uncertainty relatively high, investors need to think beyond simply the return of an investment to the volatility and risk associated with the need for downside protection.
But it's not all bad. For instance, Hanno is noting a slow uptick in defaults, while also saying it could be an opportunity for structured credit. Indeed, structured credit is one of the strategies Apollo uses in its portfolio and Hanno argues now could be a great time to pick up a stake in great businesses in need of flexible refinancing. Here, Hanno says there is the potential to generate equity-like returns.
In this episode of The Pitch, Hanno discusses the trends and opportunities he is seeing today, as well as the strategies he is focusing on in the current market.
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