Apollo CEO Rowan warns of possible market correction

Apollo Global Management CEO Marc Rowan said the company is preparing for a potential market downturn even as current economic conditions remain strong. He said the odds of an exogenous shock are elevated, citing geopolitical change, inflation risks and the impact of artificial intelligence on jobs and growth. Rowan said Apollo has shifted toward higherquality credit, reduced exposure to riskier areas such as software and held about $40 billion in cash in its insurance business to help protect against volatility. He said the firm expects market corrections and is positioning itself to handle them. He also criticized some rival insurers, warning that certain practices could create contagion if conditions worsen. Rowan did not name specific firms, but said some balance sheets may rely on structures and assumptions that are too aggressive.