Apollo Global Management Inc. CEO Marc Rowan dismisses fears of private credit posing systemic risk in retirement and insurance portfolios. Most private credit held by insurers is investment grade, Rowan states. Apollo offers transparency with daily price updates and $6 billion in private credit trades. Rowan criticizes sensational headlines about the asset class.

Alternative asset managers, like Apollo, have acquired insurers to access long-term capital for investments. Apollo’s insurance arm, Athene, invests in financial products from its asset-management division. Concerns about private equity-insurer ties have grown due to recent industry blow-ups, raising fears of credit losses. Economists estimate a $150 billion capital shortfall for North American life insurers in a severe economic downturn.

UBS Group AG Chairman Colm Kelleher warns of looming systemic risk in the insurance business at a summit in Hong Kong. Rowan refutes Kelleher’s comments during Apollo’s earnings call, clarifying that Athene does not use Egan-Jones Ratings Co. despite recent scrutiny. Rowan asserts that Kelleher is mistaken in his assessment of the situation.

Read more at Yahoo Finance: Rowan Says People ‘Lost Their Minds’ Over Private Credit Fears