Outlook for Credit Markets

Apollo Chief Economist

Seventy-three percent of bonds in the world trade at a yield of less than 5%, see chart below. There is only beta in public credit markets, and with the total amount of public credit outstanding at $12 trillion and only $15 billion in dealer inventory, there is little liquidity in public credit markets, see charts below. Our latest credit market outlook is available here.

73% of bonds in the world trading at less than 5% yield
Note: Data as of May 28, 2025. Sources: Bloomberg, Apollo Chief Economist
No alpha in public credit markets
Sources: ICE BofAML, Macrobond, Apollo Chief Economist
Dealer inventory of corporate bonds (IG+HY)
Sources: Federal Reserve Bank of New York, Macrobond, Apollo Chief Economist
The size of public credit markets: $12 trillion
Note: Ticker used for HY is H0A0 Index and for IG it is C0A0 Index and for Loans it is SPBDALB Index. Sources: ICE BofA, Bloomberg, PitchBook LCD, Apollo Chief Economist

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