1、1The information herein is provided for educational and discussion purposes only and should not be construed as financial or investment advice,nor should any information in this document be relied on when making an investment decision.Opinions and views expressed reflect the current opinions and vie

2、ws of the authors and Apollo Analysts as of the date hereof and are subject to change.Please see the end of this document for important disclosure information.August 2025 John Cortese,Partner and Head of Portfolio ManagementRob Bittencourt,Partner,Head of Thematic InvestingAkila Grewal,Partner,Globa

3、l Headof ProductShobhit Gupta,Managing Director,Corporate CreditTal Barak Harif,Principal,Head Credit WriterMid-Year Credit Outlook:Navigating the CrosswindsKEY TAKEAWAYS Resilient Fundamentals and Robust Technicals Drove Performance:Tariff-driven headline risk,geopolitical volatility,and fiscal pol

4、icy shifts caused temporary market dislocations in the first halfbut failed to derail the credit cycle.Solid macro and corporate fundamentals,coupled with persistent institutional demand and limited net new supply,anchored credit spreads and performance.While downside risks have increased,we expect

5、fundamentals and technicals to remain supportive through year-end.Public Credit Liquidity Is Breaking Down and Private Credit Could Offer a Better Alternative:The investment-grade bond market is increasingly bifurcateddominated by a core of large,liquid,recently issued bonds,while a long tail of old

6、er,smaller,dated vintages sees minimal trading activity.These off-the-run bonds offer little to no spread pickup and the spike in transaction costs made them virtually untradeable in the days after Liberation Day.Private credit may be an attractive alternative for long-term investors,offering a comp