Jim Zelter of Apollo Global Management predicts that June will be a significant stress test for the investment-grade market.

Jim Zelter of Apollo Global Management believes that if a company as large as Alphabet cannot self-fund its AI CapEx, smaller companies will face significant financing challenges.

Jim Zelter predicts that the question of whether AI will be inflationary or deflationary will become clearer in 18 to 24 months.

The scale a company must achieve to be a relevant public entity is now much higher than it was in the past, which negatively impacts smaller enterprises valued at $5 to $10 billion.

Jim Zelter estimates that the combined capital raises of OpenAI, Anthropic, and SpaceX will exceed the historical annual average of $200 billion for equity issuance.

There is currently a global shortage of long-duration investment assets relative to the long-duration liabilities of retirement pools.

The U.S. Treasury has focused its financing on the short end of the curve, specifically in 1-to-5-year maturities, over the last 3 to 5 years.

Apollo Global Management's strategy is to finance AI infrastructure, the "picks and shovels," rather than taking direct equity risk in AI companies.

Apollo Global Management has been involved in structured chip financings that allow investment-grade companies to fund the purchase of chips for other companies, with risk amortized over 3, 5, or 7 ye...

Jim Zelter predicts some companies participating in the current AI CapEx cycle will fail over the next 5 to 10 years due to non-resilient business models.

Jim Zelter believes the true secular impact of the AI CapEx cycle on broad employment numbers will not be understood until around June of 2028.

Jim Zelter predicts that inflation will remain a concern for the next one to two years.

Jim Zelter predicts that net issuance in the U.S. investment-grade (IG) market will be higher than that of the U.S. Treasury market this year.

The historical average for annual equity issuance from IPOs and other capital markets activity has been approximately $200 billion per year over the last 20 years, excluding the 2021 SPAC boom.

Jim Zelter predicts the massive, long-duration global CapEx boom in sectors like AI will create a long-term "crowding out" effect, putting upward pressure on government debt yields globally.

The combined capital expenditures of the "Magnificent Seven" tech companies this year will be larger than the entire U.S. Defense Department's spending.

CEOs of non-tech companies are now actively seeking advice from firms like Apollo Global Management on how to fund their AI aspirations, a significant change from 24 months ago.

Jim Zelter predicts that Alphabet's recent mandatory convertible bond issuance will be replicated by many other companies in the technology sector.