Apollo’s Zelter on AI Capex, ‘Higher for a While’ Rates

Watch on YouTube ↗  |  September 16, 2026 at 12:54  |  14:01  |  Bloomberg Markets
Speakers
Jim Zelter — Co-President of Apollo Global Management

Summary

Apollo President Jim Zelter says the AI infrastructure buildout is unprecedented and will require public and private equity, private credit, investment-grade debt, and multiple currencies. He sees a major private-credit opportunity financing AI capex and favors high-quality short-duration and investment-grade credit in a higher-for-longer rate environment. Zelter expects rates to stay elevated, with the 10-year Treasury yield potentially in a 4.25%-5.5% range, and also highlights resilient sports/entertainment and private-aviation assets.

  • AI infrastructure capex described as unprecedented and multi-source funded.
  • Apollo sees private credit and debt financing opportunities across AI supply chain.
  • Zelter favors credit over equity for regulated balance sheets, especially short-duration high-quality spread.
  • Higher-for-longer rates attributed to inflation, fiscal concerns, and heavy supply.
  • 10-year Treasury yield expected to remain in 4.25%-5.5% range.
  • Sports and entertainment assets seen as low-obsolescence; Atlantic Aviation cited as resilient.
  • Zelter notes access to capital at scale is a competitive advantage in AI and private equity.
  • Mortgage rates above 7% flagged as a macro concern.
Ideas
Jim Zelter Co-President of Apollo Global Management 0:03
Private credit needed for AI infrastructure.
Because the largest AI companies cannot rely on a single sector or asset class to fund capex, private capital and debt financing are essential; Apollo wants to be front and center in financings for companies such as Intel, Broadcom, Nvidia, OpenAI, and Anthropic, but will size positions carefully because debt returns par and requires diversification rather than equity-like concentration.
AI-SECTOR HIGH
Jim Zelter Co-President of Apollo Global Management 0:03
AI infrastructure buildout is unprecedented and capital-intensive.
The AI infrastructure buildout is unprecedented in scale and will require every source of capital—public and private equity, private capital, investment-grade debt, and multiple currencies—so no single asset class can fund it alone. This creates a large, multi-year investable theme across the AI infrastructure ecosystem.
AIQ HIGH
Jim Zelter Co-President of Apollo Global Management 0:47
Sports assets are resilient, low-obsolescence investments.
Sports, especially mainstream sports, have a very low chance of obsolescence because they command large aggregate followership and dominate the top live events; Apollo favors financing these unique assets, often with very low loan-to-value debt that provides a margin of safety, and wants to be associated with them for decades.
Sports and entertainment assets HIGH
Jim Zelter Co-President of Apollo Global Management 3:29
Favor short-duration high-quality credit spreads.
For regulated balance sheets targeting around 7% returns, the current short-end yields in three- and five-year maturities make high-quality spread product in short duration attractive, allowing investors to earn credit spreads without taking equity risk.
Short-duration high-quality credit HIGH
Jim Zelter Co-President of Apollo Global Management 5:03
Broadcom wins away from LLM margin war.
In the AI buildout, gross margins are currently highest away from the large language models themselves, so Broadcom and similar suppliers/component companies can do very well regardless of which LLM wins.
AVGO MED
Jim Zelter Co-President of Apollo Global Management 9:02
Rates stay higher for longer.
Inflation, fiscal concerns, heavy supply, a resilient economy/consumer, and a weak transmission mechanism from rate hikes mean rates are going to be higher for a while. The Fed may hike once or a handful of times, the 10-year Treasury yield could remain in a 4.25%-5.5% range, and the bond bear market may not be over.
US10Y HIGH
Jim Zelter Co-President of Apollo Global Management 9:02
Rates stay higher for longer.
Inflation, fiscal concerns, heavy supply, a resilient economy/consumer, and a weak transmission mechanism from rate hikes mean rates are going to be higher for a while. The Fed may hike once or a handful of times, the 10-year Treasury yield could remain in a 4.25%-5.5% range, and the bond bear market may not be over.
TLT HIGH
Jim Zelter Co-President of Apollo Global Management 12:38
Apollo benefits from credit and AI financing.
Higher-for-longer rates, a resilient economy, strong M&A and equity markets, and Apollo's 80% credit/credit-like asset base with regulated insurance balance sheets make it an amazing time to be a credit investor; Apollo is also busy financing AI capex and resilient sports/aviation assets, supporting its business.
APO HIGH
Jim Zelter Co-President of Apollo Global Management 12:38
Investment-grade credit attractive at current base rates.
With base rates between 4.5% and 5%, a strong economy, strong activity, and strong M&A/equity markets, it is an amazing time to be a credit investor; Apollo has massive investment-grade exposure and credit-like assets, and the AI ecosystem is expected to become a significant part of the IG market.
LQD HIGH
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This Bloomberg Markets video, published September 16, 2026, features Jim Zelter discussing AI-SECTOR, AIQ, Sports and entertainment assets, Short-duration high-quality credit, AVGO, US10Y, TLT, APO, LQD. 9 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Jim Zelter  · Tickers: AI-SECTOR, AIQ, Sports and entertainment assets, Short-duration high-quality credit, AVGO, US10Y, TLT, APO, LQD