Credit market outlook:

High rates and slowing economy creating opportunities for credit investors

Torsten Slok, Jyoti Agarwal, and Rajvi Shah

tslok@apollo.com

Apollo Global Management

July 2023

Unless otherwise noted, information as of July 2023.

Confidential and Proprietary - Not for distribution, in whole or in part, without the express written consent of Apollo Global Management, Inc.

It should not be assumed that investments made in the future will be profitable or will equal the performance of the investments shown in this document.
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2
 Table of contents

1. A default cycle has started

2. Yield levels
3. Spread levels
4. New issuance
5. Credit fundamentals
6. Ownership of corporate bonds
7. Loans/CLOs
8. Liquidity in US credit markets
9. Market technicals
10. Regional banks
11. Credit markets in a broader perspective
12. China HY

Source: Apollo Chief Economist 3

 -5
-4
-3
-2
-1
0
1
2
3
4
Jan-07

%-points
Jul-07
Jan-08
Jul-08
Jan-09

Source: Bloomberg, Apollo Chief Economist

Jul-09
Jan-10
Jul-10
Jan-11
Jul-11
Jan-12
Jul-12
Jan-13
Bonds more attractive than equities

Jul-13
Jan-14
Jul-14
Jan-15
Jul-15
Jan-16
Jul-16
Jan-17
Jul-17
Jan-18
BBB corporate bond yield - S&P 500 earnings yield

Jul-18
Jan-19
Jul-19
Jan-20
Jul-20
Jan-21
Jul-21
Jan-22
Jul-22
Jan-23
Jul-23
0
1
2
3
4

-5
-4
-3
-2
-1
%-points

4
A default cycle has started

Private and Confidential 5

5
 0%
2%
4%
6%
8%
10%
12%
14%
16%
1970
1971
1972

%, Trailing 12m
1973
1974
1975
1976
1977

Source: Moody’s Analytics, Apollo Chief Economist

1978
1979
1980
US bond default rates

1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
US All corporates

1993
1994
1995
1996
1997
1998
1999
Bond default rates

2000
2001
2002
2003
2004
2005
2006
2007
US Speculative grade

2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
%, Trailing 12m

2022
2023
0%
2%
4%
6%
8%
10%
12%
14%
16%

6
Leveraged loan index default rates starting to rise

% %
Morningstar/LSTA Leveraged Loan Index Default Rates
12.0% 12.0%
LTM $ of Defaults/ Total Outstanding
LTM # of Defaults/ Total Issuers
10.0% 10.0%

8.0% 8.0%

6.0% 6.0%

4.0% 4.0%

2.0% 2.0%

0.0% 0.0%
Jan-99

Jan-00

Jan-01

Jan-02

Jan-03

Jan-04

Jan-05

Jan-06

Jan-07

Jan-08

Jan-09

Jan-10

Jan-11

Jan-12

Jan-13

Jan-14

Jan-15

Jan-16

Jan-17

Jan-18

Jan-19

Jan-20

Jan-21

Jan-22

Jan-23
Source: Pitchbook LCD, Apollo Chief Economist 7
Bankruptcy filings rising for companies with at least $10mn in liabilities

Count, 6mma US bankruptcy filings Count, 6mma

70 70

65 Fed starts 65
raising rates
60 60

55 55

50 50

45 45

40 40

35 35

30 30

25 25

20 20
May-18

Sep-18

May-19

Sep-19

May-20

Sep-20

May-21

Sep-21

May-22

Sep-22

May-23
Jan-18
Mar-18

Jul-18

Jan-19
Mar-19

Jul-19

Jan-20
Mar-20

Jul-20

Jan-21
Mar-21

Jul-21

Jan-22
Mar-22

Jul-22

Jan-23
Mar-23
Nov-18

Nov-19

Nov-20

Nov-21

Nov-22
Source: S&P Capital IQ, Bloomberg, Apollo Chief Economist. Note: Bankruptcy figures include public companies or private companies with public debt with a minimum of $2 million in assets or liabilities at the time of
filing, in addition to private companies with at least $10 million in assets or liabilities. 8
Weekly bankruptcy filings rising for companies with at least $50mn in liabilities

Count We e kly ba nkruptcy filings Count

10 10
4 week moving average 12 week moving average
9 Fed starts 9
raising rates
8 8

7 7

6 6

5 5

4 4

3 3

2 2

1 1

0 0

Source: Bloomberg, Apollo Chief Economist. Note: Filings are for companies with more than $50mn in liabilities. For week ending on June 28, 2023. 9
Yield levels

Private and Confidential 10

10
US IG yield around 5.5% and HY yield around 8.3%

% US corpora te inve s tme nt gra de a nd high yie ld yie lds %

20 20
Investment Grade High Yield
18 18

16 16

14 14

12 12

10 10

8 8

6 6

4 4

2 2

0 0

Source: ICE BofA, Haver Analytics, Apollo Chief Economist. 11

US IG yield levels, by rating

% US inve s tme nt gra de corpora te bond yie lds by ra ting %

AAA AA A BBB
11 11

10 10

9 9

8 8

7 7

6 6

5 5

4 4

3 3

2 2

1 1

Source: ICE BofA, Haver Analytics, Apollo Chief Economist 12

US HY yield levels, by rating

% US high yie ld corpora te bond yie lds by ra ting %

BB B CCC & lower

33 33

28 28

23 23

18 18

13 13

8 8

3 3

Source: ICE BofA, Haver Analytics, Apollo Chief Economist 13

European corporate IG and HY yields

% Europe corpora te IG a nd HY yie lds %

30 30
High Yield Corporate Investment Grade Corporate

25 25

20 20

15 15

10 10

5 5

0 0

Source: ICE BofA, Bloomberg, Apollo Chief Economist 14

European IG yield levels, by rating
% Europe inve s tme nt gra de yie lds , by ra ting %

AAA AA A BBB
9 9

8 8

7 7

6 6

5 5

4 4

3 3

2 2

1 1

0 0

-1 -1

Source: ICE BofA, Bloomberg, Apollo Chief Economist 15

European HY yield levels, by rating

% Europe high yie ld corpora te bond yie lds , by ra ting %

BB B CCC
50 50

45 45

40 40

35 35

30 30

25 25

20 20

15 15

10 10

5 5

0 0

Source: ICE BofA, Bloomberg, Apollo Chief Economist 16

Annual returns for HY

US HY index total return (%)

70
58
60
50
40
29
30
20 15 16 17
12 14
11
10 5 5 7 8 7 5 5
3 2 2
0
-10 -1 -2
-6 -4
-11
-20
-30 -26
-40
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
YTD

Source: Bloomberg, Apollo Chief Economist 17

 Yield for the leveraged loan index: 10%

% %
Morningstar LSTA Leveraged Loan 100 yield
11 11

10 10

9 9

8 8

7 7

6 6

5 5

4 4

3 3

Source: Pitchbook LCD, Apollo Chief Economist 18

Spread levels

Private and Confidential 19

19
Credit spreads wider, but not pricing in a recession

bps US inve s tme nt gra de a nd high yie ld s pre a ds bps

2000 2000
IG Corporate HY Corporate
1800 1800
IG historical average HY historical average
1600 1600

1400 1400

1200 1200

1000 1000

800 800

600 600

400 400

200 200

0 0

Source: ICE BofA, Bloomberg, Apollo Chief Economist 20

IG spreads by rating

bps US inve s tme nt gra de corpora te bond s pre a ds , by ra ting bps

AAA AA A BBB
800 800

700 700

600 600

500 500

400 400

300 300

200 200

100 100

0 0

Source: ICE BofA, Bloomberg, Apollo Chief Economist 21

HY spreads by rating

bps US high yie ld corpora te bond s pre a ds , by ra ting bps

3000 3000
BB B CCC
2500 2500

2000 2000

1500 1500

1000 1000

500 500

0 0

Source: ICE BofA, Bloomberg, Apollo Chief Economist 22

IG quality spreads, some differentiation between BBB and single-A

bps US s pre a d diffe re ntia ls , by ra ting bps

AA - AAA A - AA BBB - A
270 270

220 220

170 170

120 120

70 70

20 20

-30 -30

Source: ICE BofA, Bloomberg, Apollo Chief Economist 23

HY quality spreads, less differentiation between CCC and B

bps US s pre a d diffe re ntia ls , by ra ting bps

BB - BBB B - BB CCC - B

2000 2000

1500 1500

1000 1000

500 500

0 0

Source: ICE BofA, Bloomberg, Apollo Chief Economist 24

US HY spread minus IG spread

bps US HY s pre a d minus IG s pre a d bps

1600 1600

1400 1400

1200 1200

1000 1000

800 800

600 600

400 400

200 200

0 0

Source: ICE BofA, Bloomberg, Apollo Chief Economist. Note: Bloomberg Index used C0A0 Index and H0A0 Index 25
European IG and HY spreads

bps Europe inve s tme nt gra de a nd high yie ld s pre a ds bps

HY Corporate IG Corporate
2500 2500

2000 2000

1500 1500

1000 1000

500 500

0 0

Source: ICE BofA, Bloomberg, Apollo Chief Economist. Note: Ticker used HE00 Index and ER00 Index. 26
European IG spreads by rating

bps Europe inve s tme nt gra de corpora te bond s pre a ds , by ra ting bps

AAA AA A BBB
500 500

450 450

400 400

350 350

300 300

250 250

200 200

150 150

100 100

50 50

0 0

Source: ICE BofA, Bloomberg, Apollo Chief Economist. 27

European HY spreads by rating

% Europe high yie ld corpora te bond yie lds , by ra ting %

BB B CCC
50 50
45 45
40 40
35 35
30 30
25 25
20 20
15 15
10 10
5 5
0 0

Source: ICE BofA, Bloomberg, Apollo Chief Economist. 28

European HY spread minus IG spread

bps Europe HY s pre a d minus IG s pre a d bps

2000 2000

1500 1500

1000 1000

500 500

0 0

Source: ICE BofA, Bloomberg, Apollo Chief Economist. Note: Ticker used HE00 Index and ER00 Index. 29
Spread between Europe HY and IG default swaps

bps Europe : S pre a d be twe e n HY a nd IG de fa ult s wa ps bps

520 520

470 470

420 420

370 370

320 320

270 270

220 220

170 170

120 120

70 70
Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21 Jan-22 Jan-23

Source: Bloomberg, Apollo Chief Economist. Note: Tickers used ITRXEXE CBBT Curncy and ITRXEBE CBBT Curncy 30
 bps

0
1000
1200
1400
1600

200
400
600
800
Jan-01
Jul-01
Jan-02
Jul-02
Jan-03
Jul-03
Jan-04
Jul-04
Jan-05
Jul-05
Jan-06
Jul-06
Jan-07
Jul-07
Jan-08
Jul-08
Jan-09
Jul-09

Source: Bloomberg, Apollo Chief Economist. Note: Bloomberg Index used BGLCTRUU index and LG50TRUU Index
Jan-10
Jul-10
Jan-11
Global HY spread minus global IG spread

Jul-11
Jan-12
Jul-12
Jan-13
Jul-13
Jan-14
Jul-14
Jan-15
Globa l HY s pre a d minus IG s pre a d

Jul-15
Jan-16
Jul-16
Jan-17
Jul-17
Jan-18
Jul-18
Jan-19
Jul-19
Jan-20
Jul-20
Jan-21
Jul-21
Jan-22
Jul-22
Jan-23
Jul-23
0
bps

200
400
600
800
1000
1200
1400
1600

31
HY spreads by sector

bps US HY s pre a d by s e ctor bps

Environmental Technology Automotive & Auto Parts Leisure Restaurants

3000 3000

2500 2500

2000 2000

1500 1500

1000 1000

500 500

0 0

Source: ICE BofA, Bloomberg, Apollo Chief Economist 32

HY spreads by sector
bps US HY s pre a d by s e ctor bps

Chemicals Metals & Mining Paper Aerospace Building Materials

2500 2500

2000 2000

1500 1500

1000 1000

500 500

0 0

Source: ICE BofA, Bloomberg, Apollo Chief Economist 33

HY spreads by sector
bps US HY s pre a d by s e ctor bps

Services Homebuilders & Real Estate Consumer Products Healthcare Food & Drug Retail

2500 2500

2000 2000

1500 1500

1000 1000

500 500

0 0

Source: ICE BofA, Bloomberg, Apollo Chief Economist 34

HY spreads by sector

bps US HY s pre a d by s e ctor bps

Energy Air Transportation Railroad Insurance Diversified Financial Services

3500 3500

3000 3000

2500 2500

2000 2000

1500 1500

1000 1000

500 500

0 0

Source: ICE BofA, Bloomberg, Apollo Chief Economist 35

IG spreads for financials and non-financials

bps US IG fina ncia ls vs non-fina ncia ls bps

US IG Financials US IG Non-financials AAA-A US IG Non-financials BBB
800 800

700 700

600 600

500 500

400 400

300 300

200 200

100 100

0 0

Source: ICE BofA, Bloomberg, Apollo Chief Economist

36
CDS spreads

bps CDS s pre a ds bps

1000 1000
iTraxx Crossover iTraxx Europe iTraxx Sr Financial iTraxx Sub Financial CDX IG CDX HY
900 900

800 800

700 700

600 600

500 500

400 400

300 300

200 200

100 100

0 0
Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21 Jan-22 Jan-23

Source: Markit, Bloomberg, Apollo Chief Economist 37

Long-duration IG spreads in US and Europe

bps Gove rnme nt OAS bps

500 500
ICE BofA 10+ Year US Corporate Index
450 ICE BofA 10+ Year Euro Corporate Index 450

400 400

350 350

300 300

250 250

200 200

150 150

100 100

50 50

0 0

Source: ICE BofA, Bloomberg, Apollo Chief Economist 38

New issuance

Private and Confidential 39

 50

0
100
150
200
250
300
$bn
Jan-09
Apr-09
Jul-09
Oct-09
Jan-10
Apr-10
Jul-10
Oct-10
US IG issuance

Source: Pitchbook LCD, Apollo Chief Economist

Jan-11
Apr-11
Jul-11
Oct-11
Jan-12
Apr-12
Jul-12
Oct-12
Jan-13
Apr-13
Jul-13
Oct-13
Jan-14
Apr-14
Jul-14
Oct-14
Jan-15
Apr-15
Jul-15
Oct-15
Jan-16
Apr-16
Jul-16
Oct-16
US IG is s ua nce

Jan-17
Apr-17
Jul-17
Oct-17
Jan-18
Apr-18
Jul-18
Oct-18
Jan-19
Apr-19
Jul-19
Oct-19
Jan-20
Apr-20
Jul-20
Oct-20
Jan-21
Apr-21
Jul-21
Oct-21
Jan-22
Apr-22
Jul-22
Oct-22
Jan-23
Apr-23
$bn

0
50
100
150
200
250
300

40
IG issuance by rating

$bn US IG is s ua nce by ra ting

250
AAA AA A BBB BB NR

200

150

100

50

Source: Pitchbook LCD, Apollo Chief Economist. 41

Sector distribution of new IG issuance

$bn Ne w is s ua nce by s e ctor for US IG

300.0
Communications Consumer Discretionary Consumer Staples Energy
Financials Healthcare Industrials Materials
250.0
Technology Utilities Government

200.0

150.0

100.0

50.0

0.0
Jul-20

Oct-20

Jul-21

Oct-21

Jul-22

Oct-22
May-20
Jun-20

Aug-20
Sep-20

Jan-21
Feb-21
Mar-21
Apr-21

Jun-21
Nov-20
Dec-20

May-21

Aug-21
Sep-21

Jan-22
Feb-22
Mar-22
Apr-22
Nov-21
Dec-21

May-22
Jun-22

Aug-22
Sep-22

Jan-23
Feb-23
Mar-23
Apr-23
Nov-22
Dec-22

May-23
Jun-23
Source: Bloomberg, Apollo Chief Economist. Note: Issuance includes bonds, loans, leveraged loans, and preferred. 42
 10
20
30
40
50
60
70

0
$bn
Jan-15
Mar-15
May-15
Jul-15
Sep-15
Nov-15
Jan-16

Source: Pitchbook LCD, Apollo Chief Economist.

Mar-16
May-16
Jul-16
Sep-16
HY issuance by rating

Nov-16
Jan-17
Mar-17
May-17
Jul-17
Sep-17
BBB

Nov-17
Jan-18
Mar-18
BB

May-18
Jul-18
Sep-18
Nov-18
B

Jan-19
Mar-19
May-19
Jul-19
Sep-19
HY is s ua nce by ra ting

Nov-19
Jan-20
CCC or lower

Mar-20
May-20
Jul-20
Sep-20
NR

Nov-20
Jan-21
Mar-21
May-21
Jul-21
Sep-21
Nov-21
Jan-22
Mar-22
May-22
Jul-22
Sep-22
Nov-22
Jan-23
Mar-23
May-23
43
Sector distribution of new HY issuance

$bn Ne w is s ua nce by s e ctor for US HY

Communications Consumer Discretionary Consumer Staples Energy Financials
100
Healthcare Industrials Materials Technology Utilities
90

80

70

60

50

40

30

20

10

Source: Bloomberg, Apollo Chief Economist. Note:. Issuance includes bonds, loans, leveraged loans and preferred. 44
Leveraged loan volume

$bn Le ve ra ge d loa n volume

120
Institutional Pro Rata

98.7
100 93.8
89.0
83.0 81.1
78.1
80
71.6
68.0 67.5

60 57.7
52.4
49.5
45.0 44.0 44.3
40.2 37.5
40 33.1 34.3 35.2 34.7 35.3
31.2 29.2
24.0 26.4
21.8 22.1 22.4 19.9 22.520.1
19.0
20 15.7
12.8

0
Oct-20

Jul-21

Oct-21

Jul-22

Oct-22
Mar-22
Apr-22
Aug-20
Sep-20

Jan-21
Feb-21
Mar-21
Apr-21
Nov-20
Dec-20

May-21
Jun-21

Aug-21
Sep-21

Jan-22
Feb-22

Jan-23
Feb-23
Mar-23
Apr-23

Jun-23
Nov-21
Dec-21

May-22
Jun-22

Aug-22
Sep-22

Nov-22
Dec-22

May-23
Source: Pitchbook LCD, Apollo Chief Economist. 45
IG new money primary mix

% IG ye a rly ne w mone y prima ry mix

AAA AA A BBB BB NR
100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Source: Pitchbook LCD, Apollo Chief Economist. Note: Data as of 30th June 2023. 46
HY new money primary mix

% HY ye a rly ne w mone y prima ry mix

BBB BB B CCC or lower NR
100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Source: Pitchbook LCD, Apollo Chief Economist. Note: Data as of 30th June 2023 47
Loans new money primary mix

% Le ve ra ge d loa ns ye a rly ne w mone y prima ry mix

BBB BB B CCC or lower NR

100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Source: Pitchbook LCD, Apollo Chief Economist. Note: 2022 YTD till 30th June 2023 48
High grade volume by proceeds

% High gra de volume by proce e ds

M&A/LBO Refinancing Buyback/Dividend (Recapitalization) GCP/Other
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%

Source: Pitchbook LCD, Apollo Chief Economist 49

High yield volumes by proceeds

$bn HY is s ua nce volume by proce e ds

70
Refinancing LBO M&A Recap/Dividend Other
60

50

40

30

20

10

Source: Pitchbook LCD, Apollo Chief Economist 50

Loan volumes by proceeds

$bn Loa n is s ua nce volume s by proce e ds

90
Refinancing LBO M&A Recap/Dividend Other
80

70

60

50

40

30

20

10

Source: Pitchbook LCD, Apollo Chief Economist 51

Covenant lite loan issuance

% Cove na nt lite loa n is s ua nce a s % of tota l le ve ra ge d loa ns is s ua nce

100%
92% 93% 92%
90% 85% 86% 87%

80% 75% 76%

70% 72%
70%
62%
60%

50%

40% 37%

29%
30% 26%

20%
9%
10% 5%
4%
0%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Source: Pitchbook LCD, Apollo Chief Economist.. Note: A covenant-lite loan is a type of financing with fewer restrictions on the borrower and fewer protections for the lender, often used in leveraged buyouts. Data as of 30th June 2023. 52
Corporate bond issuance

$bn US Corpora te bond is s ua nce $bn

Fixed Rate Floating Rate

2500 2500

2000 2000

1500 1500

1000 1000

500 500

0 0

Source: SIFMA, Apollo Chief Economist. 53

Secured junk bond issuance volume

% Secured junk bonds as a share of total issuance %

90% 90%

80% 80%

70% 70%

60% 60%

50% 50%

40% 40%

30% 30%

20% 20%

10% 10%

0% 0%
Jan-05
Jul-05
Jan-06
Jul-06
Jan-07
Jul-07
Jan-08
Jul-08
Jan-09
Jul-09
Jan-10
Jul-10
Jan-11
Jul-11
Jan-12
Jul-12
Jan-13
Jul-13
Jan-14
Jul-14
Jan-15
Jul-15
Jan-16
Jul-16
Jan-17
Jul-17
Jan-18
Jul-18
Jan-19
Jul-19
Jan-20
Jul-20
Jan-21
Jul-21
Jan-22
Jul-22
Jan-23
Source: Pitchbook LCD, Apollo Chief Economist. Note:A secured bond is the bond issued with the collateral as a security for the bond 54
Credit fundamentals

Private and Confidential 55

55
IG leverage has come down after the pandemic

De bt/EBITDA Debt/EBITDA
US IG corpora te inde x
4.0 4

Net Leverage Total Leverage

3.5 3.5

3.0 3

2.5 2.5

2.0 2

1.5 1.5

1.0 1
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Source: ICE BofA, Bloomberg, Apollo Chief Economist. Note: Index used C0A0 Index 56
High yield leverage has come down after the pandemic

De bt/EBITDA US HY Corpora te Inde x Debt/EBITDA

6.0 6.0
Net Leverage Total Leverage
5.5 5.5

5.0 5.0

4.5 4.5

4.0 4.0

3.5 3.5

3.0 3.0

2.5 2.5

2.0 2.0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Source: Bloomberg, Apollo Chief Economist. Note: Median leverage for the bonds in H0A0 index 57
IG ICR

EBITDA/Inte re s t Expe ns e EBITDA/Interest Expense

Inte re s t Cove ra ge
9.5 9.5

9.0 9.0

8.5 8.5

8.0 8.0

7.5 7.5

7.0 7.0

6.5 6.5

6.0 6.0

5.5 5.5
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Source: Bloomberg, Apollo Chief Economist 58

HY ICR

EBITDA/Interest Expense Interest Coverage ratio for High Yield EBITDA/Interest Expense
7.0 7.0

6.5 6.5

6.0 6.0

5.5 5.5

5.0 5.0

4.5 4.5

4.0 4.0

3.5 3.5

3.0 3.0

2.5 2.5

2.0 2.0

Source: Bloomberg, Apollo Chief Economist 59

Maturity profile for US fixed income

$bn Maturity profile

16000
US HY US IG Leveraged Loans CRE
14000

12000

10000

8000

6000

4000

2000

0
2023 2024 >2025

Source: ICE, Bloomberg, Pitchbook LCD, Mortgage Bankers Association, Apollo Chief Economist. Data as of March 2023 60
Default rates for auto loans and credit cards are moving higher

% %
S&P/Experian auto default index S&P/Experian bank card default index (rs)
3.0 10

9
2.5
8

7
2.0
6

1.5 5

4
1.0
3

2
0.5
1

0.0 0
Jan-06
Jul-06
Jan-07
Jul-07
Jan-08
Jul-08
Jan-09
Jul-09
Jan-10
Jul-10
Jan-11
Jul-11
Jan-12
Jul-12
Jan-13
Jul-13
Jan-14
Jul-14
Jan-15
Jul-15
Jan-16
Jul-16
Jan-17
Jul-17
Jan-18
Jul-18
Jan-19
Jul-19
Jan-20
Jul-20
Jan-21
Jul-21
Jan-22
Jul-22
Jan-23
Source: S&P, Bloomberg, Apollo Chief Economist 61
29% of the loans in the Morningstar LSTA Leveraged Loan Index are rated B-

% of B- loans in S&P rated US BSL CLOs

30% 29.0%
26.5%
25.0%
25%

20.0%
20%

14.8%
15%
12.8%

10%

5%

0%
2017 2018 2019 2020 2021 Q3 2022

Source: Morningstar, Apollo Chief Economist 62

Quality composition of the IG Index

% Qua lity bre a kdown of the IG Inde x %

AAA AA A BBB
60% 60%

50% 50%

40% 40%

30% 30%

20% 20%

10% 10%

0% 0%
Jan-89
Jan-90
Jan-91
Jan-92
Jan-93
Jan-94
Jan-95
Jan-96
Jan-97
Jan-98
Jan-99
Jan-00
Jan-01
Jan-02
Jan-03
Jan-04
Jan-05
Jan-06
Jan-07
Jan-08
Jan-09
Jan-10
Jan-11
Jan-12
Jan-13
Jan-14
Jan-15
Jan-16
Jan-17
Jan-18
Jan-19
Jan-20
Jan-21
Jan-22
Jan-23
Source: ICE BofA, Bloomberg, Apollo Chief Economist. Note: Breakdown by market value. Data as of 30th June 2023 63
Quality composition of the HY Index

% Qua lity bre a kdown of the HY Inde x %

BB B CCC & Lower

60% 60%

50% 50%

40% 40%

30% 30%

20% 20%

10% 10%

0% 0%

Source: ICE BofA, Bloomberg, Apollo Chief Economist. Note: Breakdown by market value. Data as of 30th June 2023 64
 %

0%
10%
20%
30%
40%
50%
60%
70%
80%
Jan-08
Jun-08
Nov-08
Apr-09
Sep-09

Source: Pitchbook LCD, Apollo Chief Economist

Feb-10
Jul-10
Dec-10
May-11
Oct-11
Mar-12
Aug-12
BBB

Jan-13
Jun-13
Nov-13
Apr-14
BB

Sep-14
Feb-15
Jul-15
Dec-15
B

May-16
Quality composition of the leveraged loans index

Oct-16
Mar-17
Aug-17
Jan-18
Le ve ra ge d loa ns inde x qua lity bre a kdown

Jun-18
Nov-18
CCC and below

Apr-19
Sep-19
Feb-20
Jul-20
Dec-20
May-21
Oct-21
Mar-22
Aug-22
Jan-23
Jun-23
%

0%
10%
20%
30%
40%
50%
60%
70%
80%

65
IG market is eight times bigger than HY and eight times bigger than the loan market

$trn Ma rke t va lue outs ta nding $trn

HY bonds IG bonds Leveraged loans
9 9

8 8

7 7

6 6

5 5

4 4

3 3

2 2

1 1

0 0

Source: ICE BofA, Bloomberg, Pitchbook LCD, Apollo Chief Economist. Note: Ticker used for HY is H0A0 Index and for IG it is C0A0 Index and for Loans it is SPBDALB Index. 66
Global default rates rising

Count Year-to-date defaults by region

80

70 U.S. Europe Emerging markets Other developed

60

50

40

30

20

10

0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Sources: S&P Global Ratings Research and S&P Global Market Intelligence's CreditPro®, Apollo Chief Economist. Note: Data as of 30th April 2023 67
Default rates differ across sectors

Number Sectorwise Region Default

16

14

12 U.S. Europe EM Other

10

Sources: S&P Global Ratings Research and S&P Global Market Intelligence's CreditPro®, Apollo Chief Economist. Note: Data as 31st December 2022 68
 0%
2%
4%
6%
8%
10%
12%
1970
1971
1972
%, Trailing 12m
1973
1974
1975
1976
1977

Source: Moody’s Analytics, Apollo Chief Economist

1978
1979
1980
1981
1982
1983
Global bond default rates

1984
1985
1986
1987
1988
1989
Global All corporates

1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
Bond default rates

2001
2002
2003
2004
2005
2006
Global Speculative grade

2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
%, Trailing 12m

2022
2023
0%
2%
4%
6%
8%
10%
12%

69
Non-US bond default rates

%, Trailing 12m %, Trailing 12m

12%
Bond default rates 12%
Non US All corporates Non US Speculative grade
10% 10%

8% 8%

6% 6%

4% 4%

2% 2%

0% 0%
1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023
Source: Moody’s Analytics, Apollo Chief Economist 70
Corporate bond holdings

Private and Confidential 71

The biggest holder of US corporate bonds is foreigners

Holdings of corporate bonds (% of outstanding)

Hedge funds and Households Banks Mutual Funds Foreigners Life Insurance Companies

70% 70%

60% 60%

50% 50%

40% 40%

30% 30%

20% 20%

10% 10%

0% 0%
1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020

Source: FRB, Haver Analytics, Apollo Chief Economist 72

ECB purchases of corporate bonds

EUR mn ECB P EP P Corpora te P urcha s e s

12000

10000

8000

6000

4000

2000

-2000

Source: ECB, Bloomberg, Apollo Chief Economist 73

 20
40
60
80

0
100

-20
EUR bn
Apr-15

Jul-15

Oct-15

Jan-16

Apr-16

Source: ECB, Bloomberg, Apollo Chief Economist

ECB QE ending

Jul-16

Oct-16

Jan-17

Apr-17

Jul-17
Covered Bond 3

Oct-17

Jan-18

Apr-18

Jul-18

Oct-18

Jan-19
Asset Backed Securities

Apr-19

Jul-19

Oct-19

Jan-20
Public Sector

Apr-20

Jul-20
ECB asset purchase programmes, net purchases

Oct-20

Jan-21

Apr-21
Corporate Sector

Jul-21

Oct-21

Jan-22

Apr-22

Jul-22

Oct-22

Jan-23

Apr-23
74
Loans/CLOs

Private and Confidential 75

Leveraged loan deals, by multiple

Share of leveraged deals

Less than 3.0x Between 3.0x and 3.99x Between 4.0x and 4.99x Between 5.0x and 5.99x Between 6.0x and 6.99x 7.0x or more

100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
1Q13
2Q13
3Q13
4Q13
1Q14
2Q14
3Q14
4Q14
1Q15
2Q15
3Q15
4Q15
1Q16
2Q16
3Q16
4Q16
1Q17
2Q17
3Q17
4Q17
1Q18
2Q18
3Q18
4Q18
1Q19
2Q19
3Q19
4Q19
1Q20
2Q20
3Q20
4Q20
1Q21
2Q21
3Q21
4Q21
1Q22
2Q22
3Q22
4Q22
1Q23
Source: Pitchbook LCD, Apollo Chief Economist 76
Credit metrics for leveraged loan deals

Ra tio Me dia n cre dit me trics for US Le ve ra ge d loa ns unive rs e Ratio

6 6
Leverage Interest Coverage Cash flow coverage

5 5

4 4

3 3

2 2

1 1

0 0
4Q01
2Q02
4Q02
2Q03
4Q03
2Q04
4Q04
2Q05
4Q05
2Q06
4Q06
2Q07
4Q07
2Q08
4Q08
2Q09
4Q09
2Q10
4Q10
2Q11
4Q11
2Q12
4Q12
2Q13
4Q13
2Q14
4Q14
2Q15
4Q15
2Q16
4Q16
2Q17
4Q17
2Q18
4Q18
2Q19
4Q19
2Q20
4Q20
2Q21
4Q21
2Q22
4Q22
Source: Pitchbook LCD, Apollo Chief Economist 77
Leveraged loans rating distribution, 2023Q2

US leveraged loan rating distribution

0.59%
0.65%
0.62%
8.25%

20.55%

10.73%

58.62%

BBB/BB or higher BB BB/B B B/CCC CCC or lower NR

Source: Pitchbook LCD, Apollo Chief Economist 78

Leveraged loans distribution, by industry, 2023Q2

US leveraged loan industry distribution

2.13% 2.26% 1.01%
1.73% 0.26% 1.99% 1.45%
1.56%
4.44%
0.76%

11.91% 11.20%

1.49%

2.41%

2.06%
13.28%
2.04%
0.08%
3.59%

0.61%
6.21%
2.36% 5.52%

6.91% 0.58%
4.19%
5.65% 0.55% 1.74%
0.02%

Aerospace & Defense Automotive Building Materials Cable Chemicals Computers & Electronics

Entertainment & Leisure Environmental Food & Beverage Forest Product Gaming & Hotel Healthcare

Home Furnishings Insurance Manufacturing & Machinery Metals & Mining Not for Profit Oil & Gas

Printing & Publishing Real Estate Restaurants Retail Retail Food & Drug Services & Leasing

Telecom Telecom Equipment Textile & Apparel Transportation TV Utilities

Source: Pitchbook LCD, Apollo Chief Economist 79

US CLO total volume

$bn US CLO tota l volume

60
New issue Refinance Reset

50

40

30

20

10

Source: Pitchbook LCD, Apollo Chief Economist. 80

Loans: Institutional spread relative to bespoke loans

bps US: Avg. Institutional Spread bps

550 550

500 500

450 450

400 400

350 350

300 300

250 250

200 200

Source: Pitchbook LCD, Apollo Chief Economist 81

Liquidity in US credit markets

Private and Confidential 82

IG trading liquidity

% IG trading volume as share of market (ex 144A) IG trading volume as share of market (with 144A) %
0.7% 0.7%

0.6% 0.6%

0.5% 0.5%

0.4% 0.4%

0.3% 0.3%

0.2% 0.2%

0.1% 0.1%

0.0% 0.0%

Source: ICE BofA, FINRA TRACE, Haver Analytics, Apollo Chief Economist 83
 %

0.5
1.5
2.5
3.5

0
1
2
3
Jan-18
Feb-18
Mar-18
Apr-18
May-18
Jun-18
Jul-18
Aug-18
Sep-18
Oct-18
Nov-18
Dec-18
Jan-19
Feb-19
Mar-19
Apr-19
May-19
Bid-ask spread for US IG

Jun-19
Jul-19
Aug-19
Sep-19
Oct-19
Nov-19
Dec-19
Jan-20
Feb-20
Mar-20
Apr-20
May-20
Jun-20
Jul-20

Source: Bloomberg, Apollo Chief Economist. Note: The bid-ask spread is the weighted average of Bloomberg Barclays US IG Index
Aug-20
Sep-20
Oct-20
Nov-20
Dec-20
Jan-21
Feb-21
Mar-21
Apr-21
US IG corpora te bid-a s k s pre a d

May-21
Jun-21
Jul-21
Aug-21
Sep-21
Oct-21
Nov-21
Dec-21
Jan-22
Feb-22
Mar-22
Apr-22
May-22
Jun-22
Jul-22
Aug-22
Sep-22
Oct-22
Nov-22
Dec-22
Jan-23
Feb-23
Mar-23
Apr-23
May-23
Jun-23
Jul-23
84
 %

0.5
1.5
2.5

0
1
2
Jan-18
Feb-18
Mar-18
Apr-18
May-18
Jun-18
Jul-18
Aug-18
Sep-18
Oct-18
Nov-18
Dec-18
Jan-19
Feb-19
Mar-19
Apr-19
May-19
Bid-ask spread for US HY

Jun-19
Jul-19
Aug-19
Sep-19
Oct-19
Nov-19
Dec-19
Jan-20
Feb-20
Mar-20
Apr-20
May-20
Jun-20
Jul-20

Source: Bloomberg, Apollo Chief Economist. Note: The bid-ask spread is the weighted average of Bloomberg Barclays US HY Index
Aug-20
Sep-20
Oct-20
Nov-20
Dec-20
Jan-21
Feb-21
Mar-21
Apr-21
US HY corpora te bid-a s k s pre a d

May-21
Jun-21
Jul-21
Aug-21
Sep-21
Oct-21
Nov-21
Dec-21
Jan-22
Feb-22
Mar-22
Apr-22
May-22
Jun-22
Jul-22
Aug-22
Sep-22
Oct-22
Nov-22
Dec-22
Jan-23
Feb-23
Mar-23
Apr-23
May-23
Jun-23
Jul-23
85
 10
15
20
25
30
35
40
45
50

0
5
Bn
Apr-13
Jul-13
Oct-13
Jan-14
Apr-14
Jul-14

Source: Bloomberg, Apollo Chief Economist

Oct-14
Jan-15
Apr-15
Jul-15
Oct-15
Jan-16
Apr-16
Jul-16
Oct-16
Jan-17
Apr-17
Jul-17
Oct-17
Jan-18
Apr-18
Jul-18
Dealer inventory of corporate bonds (IG+HY)

Oct-18
Jan-19
Apr-19
Jul-19
Oct-19
Jan-20
Apr-20
Jul-20
P rima ry De a le r P os itions Ne t Outright Tota l Corp S e curitie s

Oct-20
Jan-21
Apr-21
Jul-21
Oct-21
Jan-22
Apr-22
Jul-22
Oct-22
Jan-23
Apr-23
Bn

0
5
10
15
20
25
30
35
40
45
50

86
Liquidity deteriorating in UK bond market

Average yield error Average yield error

Measures of bond liquidity
8 8

7 US Germany Italy UK 7

6 6

5 5

4 4

3 3

2 2

1 1

0 0

Source: Bloomberg, Apollo Chief Economist. Note: The index displays the average yield error across the universe of government notes and bonds with remaining maturity 1-year or greater, based off the intra-day
Bloomberg relative value curve fitter. When liquidity conditions are favorable the average yield errors are small as any dislocations from fair values are normalized within a short time frame. Average yield error is
defined as an aggregate measure for dislocations in Treasury securities across the curve. 87
Market technicals

Private and Confidential 88

88
Not a broad-based rally in the S&P500
$ trn
S&P 500: Market Cap change YTD

5.0 4.71
4.8
4.5
4.3
4.0
3.8
3.5
3.3
3.0
2.8
2.5
2.3
2.0
1.8
1.5
1.3 0.97
1.0
0.8
0.5
0.3
0.0
Top 20 largest stocks Remaining 480 stocks

Source: Bloomberg, Apollo Chief Economist. 89

US IG spread highly correlated with implied rates vol

bps Index
200 Bloomberg US Agg Corporate Avg OAS MOVE Index (RHS) 200

180 180

160
160
140
140
120
120
100
100
80

80 60

60 40
May-21

Sep-21

May-22

Sep-22

May-23
Aug-21

Aug-22
Jan-21

Mar-21

Jan-22

Mar-22

Jan-23

Mar-23
Apr-21

Jun-21

Jul-21

Apr-22

Jun-22

Jul-22

Apr-23

Jun-23

Jul-23
Feb-21

Oct-21

Nov-21

Feb-22

Oct-22

Nov-22

Feb-23
Dec-21

Dec-22
Source: Bloomberg, Apollo Chief Economist 90
Investment grade maturity wall

$bn Inve s tme nt gra de ma turing de bt

2000

1800 Fixed Floating

1600

1400

1200

1000

800

600

400

200

0
2022.2H 2023 2024 2025 2026 2027
Ma turity ye a r

Source: S&P Global ratings Research, Apollo Chief Economist. Note: Data as of July 1, 2022. Includes issuers' investment-grade bonds, loans, and revolving credit facilities that are rated by S&P Global Ratings. 91
High yield maturity wall

$bn S pe cula tive gra de ma turing de bt

900

800 Fixed Floating

700

600

500

400

300

200

100

0
2022 2023 2024 2025 2026 2027
Ma turity Ye a r

Source: S&P Global ratings Research, Apollo Chief Economist. Note: Data as of July 1, 2022. Includes issuers' speculative-grade bonds, loans, and revolving credit facilities that are rated by S&P Global Ratings. 92
IG: US Non financials maturity wall

$bn
US non fina ncia ls inve s tme nt gra de ma turity wa ll
80
70
2022.2H 2023 2024 2025 2026 2027
60
50
40
30
20
10
0

Source: S&P, Apollo Chief Economist. Note: CP&ES--Chemicals, packaging, and environmental services. FP&BM--Forest products and building materials. Media and entertainment includes the leisure sector. Includes
bonds, loans, and revolving credit facilities that are rated by S&P Global Ratings. Data as of July 1, 2022. 93
HY: US Non financials maturity wall

$bn
US Non fina ncia ls s pe cula tive gra de ma turity wa ll
120
    2022.2H 2023 2024 2025 2026 2027
100

80

60

40

20

Source: S&P, Apollo Chief Economist. Note: CP&ES--Chemicals, packaging, and environmental services. FP&BM--Forest products and building materials. Media and entertainment includes the leisure sector. Includes
bonds, loans, and revolving credit facilities that are rated by S&P Global Ratings. Data as of July 1, 2022. 94
Regional banks

Private and Confidential 95

95
Regional bank spreads still very wide

bps US IG banking index bond spreads (maturing in 5-10 years) bps

400 400

350 Regional Banks Diversified Banks 350

300 300

250 250

200 200

150 150

100 100
Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23
Source: ICE BofA, Bloomberg, Apollo Chief Economist. Note: Unweighted average spreads of bonds from ICE 5-10 Year US Banking Index, C6PX Index for bonds issued before 1st Jan 2023. There are 8 banks in the
Regional index and 41 banks in the Diversified index, and Regional banks include BankUnited Inc, Citizens Financial Group, Huntington Bancshares Incorporated, Regions Financial Corporation, Truist Financial
Corporation, Webster Financial Corp, Wintrust Financial Corp, Zions, and Diversified banks includes JP Morgan, Citibank, Bank of America, etc 96
Almost 700 US banks exceed the 2006 CRE loan concentration guidance

Number Number of US banks exceeding 2006 CRE loan concentration guidance

800
CRE loans at least 300% of risk-based capital and 36-month CRE growth of 50% or higher
700 C&D loans at least 100% of risk-based capital

600

500

400

300

200

100

0
Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23

Source: S&P Global Market Intelligence, Apollo Chief Economist. Note: C&D = Construction and Development, data as of May 2023 and based on regulatory filings 97
US banks account for the bulk of CRE lending

$ trn $ trn
CRE debt outstanding market share
7 7
Individual/other CMBS Agency CMBS Federal agencies Insurance companies Banks Grand total
6.0
6 5.5
6
5.1
4.9
5 5
4.5
4.2
4.0
4 3.8 4
3.5 3.5 3.5
3.3 3.3 3.3 3.3 3.4

3 3

2 2

1 1

0 0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Source: S&P Capital IQ, Apollo Chief Economist 98

U.S. REITs hold approximately $14 billion of debt maturing this year

$ trn $ trn
REIT debt maturities 2023-2027
14 2023 2024 2025 2026 2027 14

12 12

10 10

8 8

6 6

4 4

2 2

0 0
Health care Housing Industrial Net lease Office Retail Storage Diversified/other

Source: S&P Capital IQ, Apollo Chief Economist 99

More leveraged loans are held by banks

Primary investor market: leveraged loans

Banks & Sec. Firms Non-Banks (institutional investors and finance companies)
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Source: Pitchbook LCD, Apollo Chief Economist 100

Credit markets in a
broader perspective

Private and Confidential 101

US fixed income markets by yield and size

Yield (%) Yie ld vs . ma rke t va lue for US fixe d income s e curitie s

5
HY Corporate Emerging Markets Leveraged loans
IG Corporate Non-Financials IG Corporate Financials Agency MBS
4
CMBS UST 10Y+ UST 7-10Yr
UST 3-7Yr Agency Debt ABS
3 Muni Bonds UST 1-3Yr

-1
3,000

6,000

9,000
0

12,000

15,000

18,000

21,000

24,000

27,000

30,000

33,000

36,000

39,000

42,000

45,000
Ma rke t va lue ($bn)

Source: Bloomberg Barclays, SIFMA, ICE BofA, Pitchbook LCD, Bloomberg, Apollo Chief Economist. Note: data as of 4Q21 102
European fixed income markets by yield and size

Yield (%) Yie ld vs . ma rke t va lue for Euro fixe d income s e curitie s
3 Euro High Yield
EM Euro
2.5 EURO CMBS
Euro Asset Backed & Mortgage Backed Securities
10+ Year Euro Government
2 Euro IG Non-Financial
Euro RMBS
1.5 Euro IG Financial
7-10 Year Euro Government
1 Euro Covered Bond
3-7 Year Euro Government
0-3 Year Euro Government
0.5

-0.5

-1
2,000

4,000

6,000

8,000
0

10,000

12,000

14,000
Ma rke t va lue (US D bn)

Source: Bloomberg Barclays, AFME, ICE BofA, Pitchbook LCD, Bloomberg, Apollo Chief Economist. Note: data as of 4Q21 103
Japanese fixed income markets by yield and size

Yield (%) Yie ld vs . ma rke t va lue for J P Y fixe d income s e curitie s

0.8
10+ Year Japan Government Japan IG Corporate
0.7
7-10 Year Japan Government Index 5-7 Year Japan Government
0.6 3-5 Year Japan Government 1-3 Year Japan Government
0.5 0-1 Year Japan Government
0.4

0.3

0.2

0.1

-0.1

-0.2
500

1000

1500

2000

2500

3000

3500

4000

4500

5000

5500

6000

6500

7000

7500

8000

8500
0

Ma rke t va lue (US D bn)

Source: ICE BofA, Bloomberg, Apollo Chief Economist. Data as of 1Q22 104
Market cap of US credit markets

$trn US corpora te bond ma rke t ca p $trn

12 12
AAA AA A BBB BB B CCC

10 10

8 8

6 6

4 4

2 2

0 0

Source: ICE BofA, Bloomberg, Apollo Chief Economist. Data as of 30th June 2023 105
Corporate bond market cap, by rating

$tn US corpora te bond ma rke t ca p

4.5

4.0
3.7
3.5 3.4

3.0

2.5

2.0

1.5

1.0
0.6 0.6
0.5
0.5
0.1 0.1
0.0
AAA AA A BBB BB B CCC

Source: ICE BofA, Bloomberg, Apollo Chief Economist. Data as of 30th June 2023 106
HY sector rating distributions

Sector rating distributions as of Dec 31, 2021

BB B+/B B- CCC/C
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%

Source: S&P Global Ratings Research and S&P Global Market Intelligence's CreditPro®., Apollo Chief Economist. Note: Numbers in parentheses represent overall sector’s proportion of the speculative-grade
population. CP&ES--Chemicals, packaging, and environmental services. FP&BM--Forest products and building materials. Home/RE--Homebuilders and real estate companies. 107
US corporate bond markets as a share of GDP

% GDP % GDP
60% US Corporate bond market value (% GDP) 60%
HY Corporate bond market value (% GDP)
BBB corporate bond market value (% GDP)
50% 50%

40% 40%

30% 30%

20% 20%

10% 10%

0% 0%

Source: ICE BofA, BEA, Haver Analytics, Bloomberg, Apollo Chief Economist 108
Distribution of corporate credit ratings

Count US corpora te ra ting dis tribution

4000
AAA AA A BBB BB B CCC/C
3500

3000

2500

2000

1500

1000

500

Source: S&P, Apollo Chief Economist 109

Debt-to-equity ratio is very low for corporate America

% %
Nonfinancial Corporate Debt / Market Value of Corporate Equities

100% 100%

90% 90%

80% 80%

70% 70%

60% 60%

50% 50%

40% 40%

30% 30%

20% 20%
1950 1954 1958 1962 1966 1970 1974 1978 1982 1986 1990 1994 1998 2002 2006 2010 2014 2018 2022

Source: FRB, Haver Analytics, Apollo Chief Economist. 110

Fewer and fewer corporate bonds are rated AAA and AA

Number Fitch-Ra te d 'AAA' a nd 'AA' Non-Fina ncia l Corpora te s

60
Autos and diversified manufacturing Chemicals
Consumer goods, food, beverages and tobacco Distribution and postal services
Oil and gas Healthcare
50 Retail Technology and media
Telecom Utiities

40

30

20

10

0
2001-03 2004-06 2007-09 2010-12 2013-16 2017-20

Source: Fitch Ratings, Apollo Chief Economist. Note: Including state-linked issuers with Standalone Credit Profiles in the ‘AA' category. Data cover issuers that have been rated for at least six years or at end-2020. 111
Comparing the US IG index with the EU IG index

% S e ctora l bre a kdown of US a nd Europe inve s tme nt gra de corpora te inde x

50
45
US Investment Grade Corporate Europe Investment Grade Corporate
40
35
30
25
20
15
10
5
0

Source: Bloomberg Barclays, Bloomberg, Apollo Chief Economist. Data as of 30th June 2023 112
Comparing the US HY index with the EU HY index

% S e ctora l bre a kdown of US a nd Europe high yie ld corpora te inde x

30

US High Yield Corporate Europe High Yield Corporate

25

20

15

10

0
Financials

Industrials

Consumer
Health Care

Technology
Discretionary

Energy

Utilities
Communicatio

Materials
Consumer

Staples
ns

Source: Bloomberg Barclays, Bloomberg, Apollo Chief Economist Data as of 30th June 2023 113
Pension funding status has improved

Ra tio $bn
Millima n 100 P e ns ion Funding Inde x
Funding ratio Funded status (RHS)
1.6 400

300
1.4
200
1.2
100
1.0
0

0.8 -100

-200
0.6
-300
0.4
-400
0.2
-500

0.0 -600

Source: Milliman, Bloomberg, Apollo Chief Economist. Note: Funded status measures planned assets minus projected benefit obligation 114
Retail investor activity in IG and HY

mn High yie ld a nd inve s tme nt gra de corpora te bond ETF s ha re s outs ta nding mn

iShares iBoxx Investment Grade Corporate Bond ETF iShares iBoxx High Yield Corporate Bond ETF
450 450

400 400

350 350

300 300

250 250

200 200

150 150

100 100

50 50

0 0

Source: Bloomberg, Apollo Chief Economist. Note: Tickers used HYG US Equity and LQD US Equity 115
Put volumes for IG and HY ETF

10d MA High yie ld a nd inve s tme nt gra de ETF put volume 10d MA

iShares iBoxx High Yield Corporate Bond ETF iShares iBoxx Investment Grade Corporate Bond ETF
800000 700000

700000 600000

600000
500000
500000
400000
400000
300000
300000
200000
200000

100000 100000

0 0
Jul-17

Jul-18

Jul-19

Jul-20

Jul-21

Jul-22

Jul-23
Jan-17
Mar-17

Mar-18

Mar-19

Mar-20

Mar-21

Mar-22

Mar-23
May-17

Sep-17
Nov-17
Jan-18

May-18

Sep-18
Nov-18
Jan-19

May-19

Sep-19
Nov-19
Jan-20

May-20

Sep-20
Nov-20
Jan-21

May-21

Sep-21
Nov-21
Jan-22

May-22

Sep-22
Nov-22
Jan-23

May-23
Source: Bloomberg, Apollo Chief Economist 116
Fewer high yield bonds being traded

Ratio Ratio of high yield to investment grade bonds traded Ratio

0.65 0.65

0.60 0.60

0.55 0.55

0.50 0.50

0.45 0.45

0.40 0.40

0.35 0.35

0.30 0.30

0.25 0.25

0.20 0.20

Source: FINRA Trace, Bloomberg, Apollo Chief Economist 117

IG index drawdown

% Bloombe rg US IG inde x dra wdown %

-2% -2%

-7% -7%

-12% -12%

-17% -17%

-22% -22%

Source: Bloomberg, Apollo Chief Economist. Note: Index used LUACTRUU Index 118
Bonds outstanding trading at negative interest rates

Global negative yielding debt's share in global debt

Global negative yielding corporate debt's share in global corporate debt
30% 30%

25% 25%

20% 20%

15% 15%

10% 10%

5% 5%

0% 0%

Source: Bloomberg, Apollo Chief Economist 119

 $ trn

10
12
14
16
18
20

0
2
4
6
8
Jan/18
Mar/18
May/18
Jul/18

Source: Bloomberg, Apollo Chief Economist

Sep/18
Nov/18
Jan/19
Mar/19
May/19
Jul/19
Sep/19
Nov/19
Jan/20
Mar/20
May/20
Jul/20
Sep/20
Nov/20
Jan/21
Mar/21
The total value of negative yielding debt in the world

May/21
Jul/21
Global bonds trading at negative yield

Sep/21
Nov/21
Jan/22
Mar/22
May/22
Jul/22
Sep/22
Nov/22
Jan/23
Mar/23
May/23
Jul/23
0
2
4
6
8
$ trn

10
12
14
16
18
20

120
 0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
Jan-15

USD tn
Mar-15
May-15
Jul-15
Sep-15
Nov-15

Source: Bloomberg, Apollo Chief Economist

Jan-16
Mar-16
May-16
Jul-16
Sep-16
Nov-16
Jan-17
Mar-17
May-17
Jul-17
Sep-17
Nov-17
Jan-18
Mar-18
May-18
Jul-18
Sep-18
Nov-18
Jan-19
All corporate bonds now have positive yields

Mar-19
May-19
Corporate

Jul-19
Sep-19
Nov-19
Jan-20
Globa l ne ga tive yie lding de bt

Mar-20
May-20
Jul-20
Sep-20
Nov-20
Jan-21
Mar-21
May-21
Jul-21
Sep-21
Nov-21
Jan-22
Mar-22
May-22
Jul-22
Sep-22
Nov-22
Jan-23
Mar-23
May-23
Jul-23
121
Credit spreads normally widen when the Fed is hiking

% Fed Funds target rate IG Corporate credit spreads (RHS) bps

9

8 550

7
450
6

5 350

4
250
3

2
150
1

0 50

Source: Bloomberg, Apollo Chief Economist 122

US: Floating rate bonds outstanding, July 2023

US floating rate universe

25%

4% 53%

18%

Loans Treasuries Corporate Other

Source: Bloomberg, Apollo Chief Economist. Note: Other includes Munis, Agency and Securitized. The chart filters floating rate securities for all asset class from the fixed income SRCH <GO> screen on Bloomberg. 123
From QE to QT to BoJ QE (to maintain YCC)

$bn, 6m MA Ce ntra l ba nk ba la nce s he e t e xpa ns ion $bn, 6m MA

1300 BoE BoJ Fed ECB Total 1300

1100 1100

900 900

700 700
2018Q4
500 500
Today
300 300

100 100

-100 -100

-300 -300

Source: Bloomberg, Apollo Chief Economist. Pace of purchases for 2021: BOE: £3.4bn per week till mid December 2021, FED: USD120bn per month with wind down from December with purchases ending in March 2022, ECB: Euro 90bn per month (20 bn APP +
60 bn PEPP), PEPP till March 2022, Euro 40bn in April, Euro 30bn in May and Euro 20bn in June, and only redemptions reinvested from August. BOJ:: USD 60bn per month. For 2022: All programs are expected to wind down linearly from January 2022 to
December 2022. Fed QT $ 95 per month from May 2022. BoE starts to sell GBP80 bn in the next 12 months and ECB starts QT in 2Q23 124
Inflation is reversing the hunt for yield

Risk spectrum

RISK-FREE HIGH RISK ASSETS

ASSETS

Fed funds 10y TSY IG HY S&P500 EM

Source: Apollo Chief Economist 125

 %

0%
5%
10%
15%
20%
25%
30%
35%
1980
1981
1982
1983
1984

Source: Jay Ritter, Apollo Chief Economist

1985
1986
1987
1988
1989
1990
1991
1992
1993
Dual class IPOs, driven by tech

1994
1995
1996
1997
Tech

1998
1999
2000
2001
2002
2003
2004
Dua l cla s s IP Os (% tota l)

2005
Non-Tech

2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
0%
5%
10%
15%
20%
25%
30%
35%

126
Median age of IPOs

Ye a rs Me dia n a ge of IP Os in the US Years

16 16

14 14

12 12

10 10

8 8

6 6

4 4

2 2

0 0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Source: Jay Ritter, Apollo Chief Economist 127

M&A activity declining

$bn US M&A de a ls $bn

M&A Transaction Value US 12 month MA

500 500

400 400

300 300

200 200

100 100

0 0

Source: Bloomberg, Apollo Chief Economist. Note: Ticker used is MAATUS Index 128
 50

0
100
150
200
250
300
Dec-99
Aug-00

$ bn, 12mma
Apr-01
Dec-01
Aug-02

Source: Bloomberg, Apollo Chief Economist.

Apr-03
Dec-03
Aug-04
M&A activity declining

Apr-05
Dec-05
Aug-06
Apr-07
Dec-07
Aug-08
Apr-09
Dec-09
Aug-10
Apr-11
Dec-11
Aug-12
Apr-13
Dec-13
US: M&A Transaction levels

Aug-14
Apr-15
Dec-15
Aug-16
Apr-17
Dec-17
Aug-18
Apr-19
Dec-19
Aug-20
Apr-21
Dec-21
Aug-22
Apr-23
0
50
$ bn, 12mma

100
150
200
250
300

129
Declining share of fallen angels in the HY index

% Fa lle n a nge l we ight of HY Inde x %

35% 35%

30% 30%

25% 25%

20% 20%

15% 15%

10% 10%

5% 5%

0% 0%

Source: ICE BofA, Bloomberg, Apollo Chief Economist. Note: Tickers used H0A0 Index and H0FA Index 130
Big differences between weights in S&P500 and IG index

S&P 500 Index weight by market cap Barclays corporate IG index

weights by market cap
2% 2% 2%
4%
6% 3%
7%
7% 26%
33%
7%
13%
7%

13%
8% 8%
11%
11% 12% 9%
9%
Information Technology Sector Health Care Sector Financials Health Care
Financials Sector Consumer Discretionary Sector Utilities Communications
Industrials Sector Communication Services Sector Technology Energy
Consumer Staples Sector Energy Sector Consumer Staples Industrials
Utilities Sector Materials Sector Consumer Discretionary Materials

Note: Data as of 30th June 2023. Source: Bloomberg, Apollo Chief Economist 131
Big differences between weights in S&P500 and HY index

S&P 500 index weight by market cap Bloomberg Barclays HY index weights by mkt cap
3% 3%
2% 2% 2%
4%
6%

26% 28%
7% 7%

8%
13%

9%
13% 14%
8%
11%
11% 12% 11%

Information Technology Sector Health Care Sector Consumer Discretionary Communications

Financials Sector Consumer Discretionary Sector Energy Financials
Industrials Sector Communication Services Sector Materials Industrials
Consumer Staples Sector Energy Sector Health Care Technology
Utilities Sector Materials Sector Consumer Staples Utilities

Note: Data as of 30th June 2023. Source: Bloomberg, Apollo Chief Economist 132
Synchronized sell-off in credit so far. Little differentiation between
credits compared with 2008 and March 2020 episodes.
Aug US tota l re turns , 2008 Jan US tota l re turns , 2020 Jan US tota l re turns , 2022
1s t=100 1s t=100 1s t=100

110 110 110

105 105 105
100 100 100
95 95 95
90 90 90
85 85 85
80 80 80
75 IG HY
75 75
IG HY A BBB
70 IG HY A 70 A BBB 70 BB B
65 65 BB B 65
BBB BB B
60 60 60
1-Aug 1-Sep 1-Oct 1-Nov 1-Dec

1-Oct
1-Jul

1-Nov
1-Dec
1-Mar
1-Apr
1-May
1-Jun

1-Aug
1-Sep
1-Jan
1-Feb
Source: Bloomberg, Apollo Chief Economist 133
Synchronized sell-off in credit so far. Little differentiation between
credits compared with 2008 and March 2020 episodes.
Aug US s pre a ds , 2008 Jan US s pre a ds , 2020 Jan US s pre a ds , 2022
1s t=100 1s t=100 1s t=100
450 450 450
IG HY
400 400 A BBB 400
IG HY BB B IG HY
350 350 350
A BBB
A BBB BB B
300 300 300
BB B
250 250 250

200 200 200

150 150 150

100 100 100

50 50 50
1-Aug 1-Sep 1-Oct 1-Nov 1-Dec

1-Oct
1-Jul
1-Jan
1-Feb
1-Mar
1-Apr
1-May
1-Jun

1-Aug
1-Sep

1-Nov
1-Dec
1-Oct
1-Jan
1-Feb
1-Mar
1-Apr
1-May

1-Jul
1-Jun

1-Aug
1-Sep

1-Nov
1-Dec
Source: Bloomberg, Apollo Chief Economist 134
Valuation of credit versus equities

IG spreads S pre a ds vs S &P 500 HY s pre a ds S pre a ds vs S &P 500

450 1200
Jan 2020 to Dec 2022 Jan 2022 to today Jan 2020 to Dec 2022 Jan 2022 to today
400
1000
350

300 800

250
600
200

150 400

100
200
50

0 0
2,000 2,500 3,000 3,500 4,000 4,500 5,000 2,000 2,500 3,000 3,500 4,000 4,500 5,000
S &P 500 S &P 500

Source: Bloomberg, Apollo Chief Economist 135

 %

10
20
30
40
50
60
70
80
90

0
100
Jan-13
Apr-13
Jul-13
Oct-13
Jan-14
Apr-14
Jul-14
Oct-14
Jan-15
Apr-15
Jul-15
Oct-15
Jan-16
Apr-16
Jul-16
Oct-16
Jan-17

Source: Bloomberg, Apollo Chief Economist. Note: Data used for members in the LBUSTRUU Index as of 6th July 2023
Apr-17
Jul-17
Oct-17
90% of the US IG market trading below par

Jan-18
Apr-18
Jul-18
Oct-18
Jan-19
Apr-19
Jul-19
% of inve s tme nt gra de bonds tra ding be low pa r

Oct-19
Jan-20
Apr-20
Jul-20
Oct-20
Jan-21
Apr-21
Jul-21
Oct-21
Jan-22
Apr-22
Jul-22
Oct-22
Jan-23
Apr-23
Jul-23
136
 -40
-20
20
40
60
80

0
100
Jan-97

% ba nks
Aug-97
Mar-98
Oct-98
May-99
Dec-99
Jul-00
Feb-01
Sep-01
Apr-02

Source: FRB, Haver Analytics, Bloomberg, Apollo Chief Economist

Nov-02
Jun-03
Jan-04
Aug-04
Mar-05
Oct-05
May-06
Dec-06
Jul-07
Feb-08
Sep-08
Apr-09
Nov-09
Jun-10
Jan-11
Aug-11
Banks Tightening C&I Loans to Large Firms

Mar-12
Oct-12
May-13
Dec-13
Jul-14
Feb-15
Sep-15
Apr-16
Nov-16
Jun-17
Jan-18
Banks tightening credit conditions, HY spread should be trading wider

Aug-18
High yield spread

Mar-19
Oct-19
May-20
Dec-20
Jul-21
Feb-22
Sep-22
Apr-23
0
500
bps

1000
1500
2000
2500

137
US share of the world economy and global financial markets

% US share of: Global GDP %

Global equity market capitalization
75 Global IG + HY outstanding 75
Global government bonds outstanding

65 65

55 55

45 45

35 35

25 25

15 15

Source: Bloomberg, Haver, Apollo Chief Economist (Note: Bloomberg tickers: MXUS Index, MXWD Index , LUATTRUU Index, BTSYTRUU Index, LF98TRUU Index, LG30TRUU index, LUACTRUU Index, I09805US index ) 138
Corporate debt is coming down as a share of GDP

% GDP Non fina ncia l corpora te lia bilitie s % GDP

120% 120%

110% 110%

100% 100%

90% 90%

80% 80%

70% 70%

60% 60%
1960
1961
1963
1964
1965
1967
1968
1970
1971
1972
1974
1975
1977
1978
1980
1981
1982
1984
1985
1987
1988
1989
1991
1992
1994
1995
1997
1998
1999
2001
2002
2004
2005
2006
2008
2009
2011
2012
2014
2015
2016
2018
2019
2021
2022
Source: FRB, Haver Analytics, Apollo Chief Economist 139
Lower-rated firms are by definition more vulnerable to rising interest rates

Share of corporate bonds rated BBB and below

90% 90%

85% 85%

80% 80%

75% 75%

70% 70%

65% 65%

60% 60%

55% 55%

50% 50%

45% 45%

40% 40%

Source: S&P, Apollo Chief Economist 140

Share of corporate bond market value outstanding rated BBB and below

Share of US corporate bonds outstanding rated BBB and below, by market cap
60% 60%

55% 55%

50% 50%

45% 45%

40% 40%

Source: ICE BofA, Bloomberg, Apollo Chief Economist. Data as of 30th June 2023 141
IG credit index duration declining

% US IG corpora te inde x dura tion %

9.0 9.0

8.5 8.5

8.0 8.0

7.5 7.5

7.0 7.0

6.5 6.5

6.0 6.0

5.5 5.5

5.0 5.0

Source: Bloomberg, Apollo Chief Economist. Note: The measure used is modified duration, which measures the expected change in a bond's price to a 1% change in interest rates. 142
HY credit index duration

% US HY corpora te inde x dura tion %

5.5 5.5

5.0 5.0

4.5 4.5

4.0 4.0

3.5 3.5

3.0 3.0

2.5 2.5

Source: Bloomberg, Apollo Chief Economist. Note: The measure used is modified duration, which measures the expected change in a bond's price to a 1% change in interest rates. 143
Flow monitor

US bank loans ETF flows IG ETF flows

$ mn $ mn $ bn $ bn
4000 4000 350 350
300 300
2000 2000 250 250
0 0 200 200
150 150
-2000 -2000 100 100
50 50
-4000 -4000 0 0
-6000 -6000 -50 -50

Jan-22

Feb-22

Jan-23

Feb-23
Dec-22
May-22

Oct-22

May-23
Apr-22

Apr-23
Aug-22

Sep-22
Jun-22

Jul-22

Nov-22

Jun-23
Mar-22

Mar-23
HY ETF Flows Crypto ETF flows
$ 5bn $5bn $ mn $ mn
0 0 450 450
-5 -5 350 350
-10 -10 250 250
-15 -15 150 150
-20 -20 50 50
-25 -25 -50 -50

May-22

Jul-22

May-23

Jul-23
Feb-22
Mar-22

Apr-22

Oct-22

Feb-23
Mar-23

Apr-23
Nov-22
Dec-22
Aug-22

Sep-22
Jan-22

Jun-22

Jan-23

Jun-23
Source: Bloomberg, Apollo Chief Economist (Note: bito US equity: Crypto ETF flows, BFFUEBK Index: US Bank loans ETF flows, BFFUEHY Index: HY ETF flows; BFFUEIG Index: US IG ETF flows) 144
 10
20
30
40
50
60
70
80
90
100
Inde x
Jan-20
Feb-20
Mar-20
Apr-20
May-20
Jun-20
Jul-20
Aug-20
Sep-20
Oct-20
Nov-20
Dec-20
Jan-21
Feb-21
Mar-21

Source: Bloomberg, Apollo Chief Economist. Note: Tickers used are V2X Index and LP01OAS Index
Apr-21
May-21
Jun-21
Jul-21
Aug-21
Sep-21
Oct-21
Euro STOXX 50 Volatility Index

Nov-21
Dec-21
Jan-22
Feb-22
Mar-22
Apr-22
Convergence between EU equity vol and EU HY spreads

May-22
Jun-22
Jul-22
Euro HY OAS (RHS)

Aug-22
Sep-22
Oct-22
Nov-22
Dec-22
Jan-23
Feb-23
Mar-23
Apr-23
May-23
Jun-23
Jul-23
300
400
500
600
700
800
900
bps
1000

145
18% of bonds in the world trading at less than 2% yield

% globa l bonds outs ta nding

40
36
35

30

25

20 18
15
15

10
5
5

0
<0% <1% <2% <3%
S ha re of globa l bonds tra ding a t le s s tha n:

Source: Bloomberg, Apollo Chief Economist 146

NY Fed measure of corporate bond market functioning elevated level of distress in IG

Inde x Corpora te bond ma rke t dis tre s s inde x Index

Market Investment grade High yield
1 1
0.9 0.9
0.8 0.8
0.7 0.7
0.6 0.6
0.5 0.5
0.4 0.4
0.3 0.3
0.2 0.2
0.1 0.1
0 0

Source: FRB of New York, Apollo Chief Economist (Note: Corporate bonds are a key source of funding for U.S. non-financial corporations and a key investment security for insurance companies, pension funds, and
mutual funds. Distress in the corporate bond market can thus both impair access to credit for corporate borrowers and reduce investment opportunities for key financial sub-sectors. CMDI offers a single measure to
quantify joint dislocations in the primary and secondary corporate bond markets. Ranging from 0 to 1, a higher level of CMDI corresponds with historically extreme levels of dislocation. CMDI links bond market
functioning to future economic activity through a new measure. 147
20% of HY bonds trading with yield higher than 10%

% % of HY corp bonds tra ding a t yie ld > 10% %

40 40

35 35

30 30

25 25

20 20

15 15

10 10

5 5

0 0
Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21 Jan-22 Jan-23

Source: Bloomberg, Apollo Chief Economist. Note: HY bond universe is H0A0 Index 148
US: Total assets under management in private markets

USD bn
US: Private markets AUM
140
Private equity Real estate Private debt Natural resources

120

100

80

60

40

20

0
Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21

Source: Preqin, Apollo Chief Economist (Note: Real estate includes private real estate and infrastructure funds) 149
Total assets under management in private markets funds globally

$ trn
Global: Private markets AUM
12 Real estate Private equity Private debt Natural resources

10

Source: Preqin, Apollo Chief Economist (Note: Real estate includes private real estate and infrastructure funds) 150
US CLO investor base by tranche

US CLO inve s tor ba s e

Insurance Company Mutual Fund
Depository Institution Other Financial Organizations (incl. BHCs)
Fund or Other Investment Vehicle Pension Fund
Nonfinancial Organizations (incl. household)

Total 33% 18% 18% 10% 6% 7% 8%

Senior Notes 26% 19% 28% 10% 3% 8% 5%

Mezzanine and Junior Notes 54% 13% 2% 9% 7% 5% 10%

Equity Notes 4% 29% 2% 17% 27% 1% 20%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Source: TIC, Moody’s data, Fed, Apollo Chief Economist 151

China HY

Private and Confidential 152

152
The yield on China HY is now at 20%

Yie ld, % Yield, %

China HY cre dit

30 30

25 25

20 20

15 15

10 10

5 5

0 0
Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21 Jan-22 Jan-23

Source: Bloomberg Barclays, Bloomberg H29381US Index, Apollo Chief Economist 153
Little contagion from China HY to US and EU credit markets

Norma lis e d to 31s t De c 2020 YTD re turns Normalised to 31st Dec 2020
10% 10%

0% 0%

-10%
-10%
-20%
-20%
-30%
-30%
-40%
-40%
-50%

US HY Euro HY -50%
-60%
China dollar denominated HY China dollar denominated IG -60%
-70%
Global HY
-80% -70%

Source: ICE BofA, Bloomberg, Apollo Chief Economist, 154

Top issuer names

Private and Confidential 155

155
 Top issuer names for IG and HY
Top 50 Investment Grade corporate bond issuers Top 50 High Yield corporate bond issuers
1 Bank of America Corporation Ford Motor Credit Company LLC
2 JPMorgan Chase & Co. CCO Holdings LLC/ CCO Holdings Capital Corp.
3 Morgan Stanley Tenet Healthcare Corporation
4 Citigroup Inc. TransDigm Inc.
5 Goldman Sachs Group Inc. Carnival Corporation
6 Wells Fargo & Company Ford Motor Company
7 Apple Inc. Royal Caribbean Group
8 HSBC Holdings PLC CSC Holdings LLC
9 AT&T Inc Community Health Systems Incorporated
10 Oracle Corporation DISH DBS Corporation
11 Verizon Communications Inc. Bausch Health Companies Inc
12 Comcast Corporation Caesars Entertainment Inc New
13 UnitedHealth Group Inc. Sirius Xm Radio Inc
14 Amazon.com Inc. Iron Mountain Inc.
15 Amgen Inc. OneMain Financial Corporation
16 UBS Group AG AAdvantage Loyalty IP Ltd/ American Airlines Inc
17 CVS Health Corp Albertsons Cos Inc / Safeway Inc / New Albertsons LP / Albertsons LLC / (Albertsons Safeway LLC)
18 T-Mobile USA Inc. Mozart Debt Merger Subordinated Inc.
19 Mitsubishi UFJ Financial Group Inc. Equitrans Midstream Corporation
20 AbbVie Inc. Altice France S.A
21 The Boeing Company 1011778 B.C. Unlimited Liability Company / New Red Finance Inc.
22 Intel Corporation Bombardier Inc.
23 Microsoft Corporation Ball Corporation
24 Barclays PLC United Rentals (North America) Inc.
25 Sumitomo Mitsui Financial Group Inc. Hilton Domestic Operating Co Inc.
26 Walt Disney Company Calpine Corporation
27 Charter Communications Operating LLC/Charter Communications Operating Capital Corp. Icahn Enterprises L.P. / Icahn Enterprises Finance Corporation
28 Home Depot Inc Post Holdings Inc.
29 Walmart Inc Level 3 Financing Inc.
30 Lowes Companies Inc. Univision Commmunications Inc.
31 Anheuser-Busch InBev Worldwide Inc. Vistra Operations Co LLC
32 Pfizer Investment Enterprises Pte Ltd. The Goodyear Tire & Rubber Company
33 HCA Inc. Venture Global LNG Inc.
34 General Motors Financial Company Inc FirstEnergy Corp.
35 Pacific Gas and Electric Company Uniti Group LP/Uniti Fiber Holdings Inc/Uniti Group Finance 2019 Inc/CSL Capital LLC
36 Energy Transfer LP HUB International Ltd.
37 Broadcom Inc Bath & Body Works Inc
38 BNP Paribas SA Service Properties Trust
39 Royal Bank of Canada Carvana Co
40 Bristol-Myers Squibb Company Transocean Inc.
41 Raytheon Technologies Corporation Venture Global Calcasieu Pass LLC
42 International Business Machines Corporation YUM Brands Inc
43 Merck & Co. Inc Newell Brands Inc.
44 Toyota Motor Credit Corp. GFL Environmental Inc.
45 Shell International Finance B.V. Uber Technologies Inc
46 Philip Morris International Inc. Navient Corporation
47 U.S. Bancorp. NCL Corporation Ltd.
48 The Bank of New York Mellon Corporation Standard Buildings Solutions Inc.
49 Exxon Mobil Corporation Mauser Packaging Solutions Holding Company
50 Pepsico Inc Vodafone Group PLC

Source: Bloomberg, Apollo Chief Economist. Note: Top 50 issuers for C0A0 and H0A0 Index 156
 Torsten Slok joined Apollo in August 2020 as
Chief Economist and he leads Apollo's
macroeconomic and market analysis across
the platform.

Prior to joining, Mr. Slok worked for 15 years

as Chief Economist at Deutsche Bank where
Torsten Slok, Ph.D. his team was top ranked in the annual
Institutional Investor survey for a decade. Prior
to joining Deutsche Bank Mr. Slok worked at
the IMF in Washington, DC and at the OECD in
Chief Economist Paris.
Apollo Global Management Mr. Slok has a Ph.D in Economics and has
tslok@apollo.com studied at the University of Copenhagen and
Princeton University.

157