Credit is the largest asset class that Apollo manages, they know this stuff.
From Apollo Global Management, August 29 (bolding in original):
Think Six Months Ahead
The risks are rising that long rates six months from now could be a lot lower than where they are today.
Long rates are high today because of inflation and fiscal problems. But these forces could end up being dominated in early 2027 by what happens to AI, see the first chart below.
If AI succeeds and tech companies generate trillions in revenue, AI will be massively deflationary and push rates lower.
If AI does not work out, the bubble bursts and the Nasdaq is down 50% as investors rotate out of equities into Treasuries and long rates fall dramatically....
....MORE
It's not just Mr. Slok. Here's his boss in a June 11 post:
More From John Zito: "AI Is 'Hyper-Deflationary,' Making Risk Hard To Price, Says Apollo's Co-President"
