Apollo's Zito on Fears Facing Private Credit Investors
Speakers
John Zito
— Head of Global Communications, eToro
Summary
Apollo's John Zito discusses how the current high volatility regime, driven by the early stage of a technology platform shift, makes credit a safer investment due to its senior position in the capital structure. He also emphasizes the importance of sector-specific factors such as asset intensity, customer control, and capital strength in determining company valuations.
- John Zito characterizes the current market as a high volatility regime due to technological platform shifts.
- He argues that credit is safer than equity in this environment because it is senior in the capital structure.
- Zito notes that services companies will face lower transaction multiples.
- He highlights the importance of asset heaviness, customer control, and capital availability for company protection.
- There is a potential shift in value from labor to capital, which could be disruptive for investors.
- Zito believes the market is not fully acknowledging credit's safety amid the acknowledged volatility.
Trade Ideas
Credit is safer in high vol regime.
The current environment is a higher volatility regime due to the early days of a total technology platform, which creates more uncertainty and a wider variety of outcomes. In such a regime, credit is a safer place to be because it is senior in the capital structure and closer to the underlying asset. Investors should favor credit over equity in this environment.
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This Bloomberg Markets video, published May 04, 2026, features John Zito discussing CREDIT. 1 trade idea extracted by AI with direction and confidence scoring.