high yield

“Today people are willing to take some, I would argue, crazy risks to generate a six percent return in high yield and other places.”

“Most of the volume, for example, in ETFs would be things like the SPDR, which is the S&P, and there's just not, there's unlikely to be a big issue there, but as you point out, we've had this massive proliferation, and especially into credit markets, and you kn…”

“So the question is, picking up three, four, five, six percent in high yield from today forward, it's like picking up pennies in front of a steamroller. Is it worth it? That's the question. And my answer to that is no.”

“You don't want to be passive in high yields. And, you know, even if you just want to get exposure, you still want to be active there. You don't want the biggest bonds in your portfolio to be there just because the company's issued more debt.”

“High yield typically trades not dissimilarly to equities. It's a little bit more of a senior claim. And so you have sort of something that's not too far off in terms of a comparability and allows you to sort of calibrate.”

“Obviously with spreads blowing out the way they have opportunities in private credit, distressed, high yield are interesting. And there's enough stress that looks like it's been created in that market to make it attractive for liquidity providers. Wouldn't say…”

“The major driver of portfolio risk is growth and equity growth. But that exists in equities, and that exists in high yield, potentially, real estate, certainly private equity, and maybe even other investments. And so having a very clear picture of where that e…”

“And in fact, the recovery rate is in the forties. So if you look at a default rate of three, four percent, and if you get close to half your money back afterwards, your loss is like two percent.”

“If you looked at our entire footprint at the time, we had virtually no high yield on the Apollo platform.”

“As high yield has become higher quality, levered loan market is often lower quality.”