Apollo Battens Down

It seems like yesterday Apollo CEO Marc Rowan was calling private credit "investment grade" and safe for 401(k) retirement accounts.  That virtually risk free private credit is no more as Apollo stockpiles cash, slashes leverage and dumps risky debt.

When "something bad happens" Rowan and his private equity peers have elected officials to work on billionaire bailouts and the Federal Reserve Bank to backstop their junk.  

Before then they can play the system as financial cops have been pulled from the beat.  My wise friend noted:

So Mr. Rowan said last week everything was fine, no worries, but it seems the private markets with his private view of his private problems gives him an edge to misdirect the crowds.

Who would have figured?  Wonder how many cheap CDS he purchased?

Will their PEUs survive the write downs as various sponsors pass bankrupt affiliates around like a bottle of Mezcal?  Get the worm, get the company.  

Surely, the PEU boys will not only survive but thrive in their secure estates to which they retreated.  Batten down the super-yacht's hatches as well as those of the support yacht.  Rough seas may be ahead.