Apollo President: Investment-Grade Bond Sales to Surpass US Treasury Issuance

Apollo Global Management President Jim Zelter predicts that investment-grade corporate bond sales will exceed the net issuance volume of US Treasuries this year. Zelter noted that major technology companies, particularly the 'Magnificent Seven,' along with other firms, are seeking significant funds for expansion plans. Zelter stated that this could lead to record levels in the corporate debt market. He emphasized that demand for high-grade debt instruments is rising as investors seek yields and companies aim to take advantage of the low-interest-rate environment. The Apollo executive added that while the US Treasury's borrowing needs remain high due to the budget deficit and existing debt burden, corporate borrowing will be more dominant this year. This situation could impact liquidity and interest rates in the markets. Zelter's remarks are seen as an important signal for investors' portfolio diversification strategies. In particular, the borrowing appetite of major players in the technology sector could shape market dynamics. This is not investment advice.