Apollo Global Management Investor Day Presentation Deck slide image

Apollo Global Management Investor Day Presentation Deck

We Run Our Business Aligned with Our Risk Appetite and in Consideration of Historical Events 10 Yr US Treasury Yield Absolute Spreads (BBB / B) Equity Markets4 Fixed Income Defaults (BBB / B) Housing Price (Peak to Trough) Est. Net Impact on Excess Capital5 ATHENE ASSUMPTIONS Baseline Recession Scenario Down 60% (e.g. ~70bps) 279bps / 802bps³ (34%) 0.7% / 12.9% (3%) $0.0 Deep Recession Scenario Down 83% (e.g. ~120bps) 636bps / 1,789bps³ (49%) 1.4% / 13.7% (27%) ($0.6) 1990 Up 4% 240bps / ΝΑ (20%) 0.3% / 13.7% (3%) SAMPLE HISTORICAL RECESSION DATA 2001 Down 21% 318bps / 1,083bps (30%) 1.0% / 9.2% No Decline 2008 Down 43% 642bps / 1,913bps (49%) 0.9% / 7.1% (33%) Euro 2016 Down 84%² 317bps/ 876bps (12%) 0.0% / 2.4% No Decline Net impact represents the total estimated stress impact in a recession, offset by 2020 STAT earnings and mgmt. actions COVID 2020¹ Down 68% 474bps / 1139bps (34%) 0.1% / 6.2% No Decline Source: Spread -JPMorgan US Liquid Index (JULI) BBB Spread (Libor) for BBB and JPMorgan Domestic HY Spread to Worst for B, except for 1990 and Euro 2016. For 1990: Federal Reserve Bank of St. Louis, Moody's Seasoned Baa Corporate Bond Yield Relative to Yield on 10-Year Treasury Constant Maturity BAA10Y as JP Morgan indices were not available. For Euro 2016: JPMorgan US Liquid Index(JULI) BBB Spread (Treasury) on Feb 10th 2016 for BBB and JPMorgan Developed Market Single B HY Spread to Worst on Feb 9th, 2016 for B. FI Default - For COVID 2020: Moody's Monthly Default Report from Moody's Investor Services. For historical experiences: Moody's Annual Default Study, Corporate Default and Recovery Rates. There is no guarantee that Athene will be able to replicate actual historical recession experience under current market conditions or during future recessions. Footnote explanations may be found in presentation endnotes. APOLLO INVESTOR DAY 2021 168
View entire presentation