Growth Prospects 'Not Great' For UK: Slok
Speakers
Torsten Slok
— Partner, Apollo Global Management
Summary
Torsten Slok discusses stress in software-focused private credit from AI disruption and high leverage, while noting the US economy remains robust. Upcoming events could spark volatility, but broad fundamentals still look strong.
- Software companies in private credit face problems from AI disruption and high leverage.
- Higher-for-longer rates pressure heavily leveraged private credit borrowers.
- Upcoming Bank of England meeting, hyperscaler earnings, and Middle East tensions could create volatility.
- The US economy shows strong GDP, consumer spending, and capex.
- AI boom underscores economic strength despite sectoral issues.
- Consensus expectations remain positive for the US.
- The positive market narrative is likely to continue.
Ideas
Software private credit struggles on high leverage.
Software companies in private credit are struggling due to AI disruption risks, very high leverage, and low coverage ratios, leaving them unable to perform well in a higher-for-longer interest rate environment with persistent upward inflation pressure.
Strong U.S. economy supports positive outlook.
The U.S. economy is holding up very well with strong GDP, consumer spending, and CapEx, supported by the AI boom, creating a positive economic outlook that will continue to drive the market narrative forward.
Up Next
This Bloomberg Markets video, published July 23, 2026, features Torsten Slok discussing IGV, SPY. 2 trade ideas extracted by AI with direction and confidence scoring.
Speakers: Torsten Slok · Tickers: IGV, SPY