Apollo Global���s Zelter Sees 'Choppy' Year for Credit Returns

The video discusses direct lending, highlighting its advantages over syndicated loans, such as flexibility and growth opportunities for companies. It emphasizes the importance of scale and expertise in lending, and the impact of regulatory environments on growth. The discussion also covers market predictions, potential risks, and the evolving economic cycle, with a focus on political and economic factors affecting the lending industry.

What is a key benefit of direct lending according to the first section?

• It guarantees high returns.

• It provides resilience during economic cycles.

• It allows for aggressive investment strategies.

• It eliminates all competitors.

How does scale provide a competitive advantage in direct lending?

• By focusing solely on small cap markets.

• By reducing the need for regulatory compliance.

• By enabling unique origination and flexibility.

• By allowing for more aggressive investments.

What is a benefit for companies receiving direct loans?

• They gain flexibility in repayment and capital raising.

• They can bypass all market risks.

• They can avoid all regulatory scrutiny.

• They receive guaranteed profits.

What is a significant challenge mentioned in the third section regarding lending standards?

• Lack of regulatory oversight.

• High leverage percentages.

• Unfulfilled pro forma adjustments.

• Excessive competition in the market.

What is the expected return for credit in 2020 as mentioned in the third section?

• Double digits

• Mid to high single digits

• Low single digits

• Negative returns

What economic scenario is highlighted as a potential concern in the final section?

• Hyperinflation

• Stagflation

• Deflation

• Recession

What is a key factor in navigating the current market according to the final section?

• Complete reliance on government policies

• Cautious and thoughtful approach

• Ignoring market trends

• Aggressive investment strategies