Beach Point's Bowron, Apollo's Grewal on Distressed Investing

The video discusses investment strategies, focusing on a mix of high-yield and distressed opportunities. It highlights the performance of floating rate credit over fixed income and anticipates continued market dispersion in 2025. The focus is on top-of-the-capital-structure investments and asset-backed opportunities, particularly those with high-quality backing.

What investment strategy is highlighted as a mix of high-yield and distressed opportunities?

• Focusing only on distressed opportunities

• Investing solely in fixed income

• Avoiding high-yield investments

• Deploying capital across the quality spectrum

Which type of credit outperformed fixed income in 2024 despite higher default activity?

• Equity investments

• Real estate investments

• Fixed rate credit

• Floating rate credit

What sectors is Apollo currently avoiding due to perceived weaknesses?

• Technology and healthcare

• Energy and utilities

• Consumer and auto

• Finance and insurance

What is expected to occur across the credit markets in 2025?

• Decline in all investment opportunities

• Complete market stability

• Uniform growth across all sectors

• Significant dispersion with winners and losers

In asset-backed investments, what is emphasized as crucial?

• Ensuring high-quality backing

• Prioritizing low-quality backing

• Avoiding asset-backed opportunities

• Focusing on second lien investments