Apollo's Zelter on Q2, Credit Strategy, Carvana Deal

The video discusses recent developments in the bond market and the US downgrade, highlighting the global rise in capital costs and its impact on businesses. Jim shares insights on financial conditions tightening, especially in the US and Europe, and how his company is adapting. The discussion shifts to consumer credit trends and the company's cautious approach. Jim also elaborates on investment strategies in companies like Karvana and Yellow, focusing on deleveraging and equity balance.

What is the primary concern discussed by Jim regarding the global financial environment?

• Decreasing inflation rates

• Increasing cost of capital

• Declining consumer demand

• Stable bond market

How does Jim view the financial conditions over the next 24 months?

• Conditions will become more challenging

• Conditions will improve significantly

• Conditions will have no impact on businesses

• Conditions will remain stable

What is Jim's perspective on the potential for private credit in the current market?

• It is too risky to invest in

• It is irrelevant to current market conditions

• It is a declining sector

• It is a golden opportunity

What is Jim's company's approach to the shift in consumer credit?

• Avoiding consumer credit entirely

• Cautiously engaging with high-rated counterparties

• Focusing solely on corporate lending

• Aggressively expanding into consumer loans

How does Jim's company handle exposure to less prime auto loans?

• By focusing on high-risk loans

• By avoiding them completely

• By maintaining a small and cautious exposure

• By heavily investing in them

What was a key factor in Karvana's financial strategy according to Jim?

• Increasing leverage

• Avoiding bond markets

• Reducing leverage and increasing equity

• Focusing on short-term gains

What is the approach taken by Jim's company in dealing with the trucking firm Yellow?

• Avoiding any involvement

• Taking over the company's operations

• Engaging in thoughtful dialogues with stakeholders

• Providing immediate financial aid