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Apollo's Financial Origami Is Smart — And Scary
There's a new fox sniffing around the private credit henhouse. Last year, Apollo Global Management Inc. engineered an innovative trade for its insurance arm Athene Holding Ltd., with the help of an obscure Luxembourg-based firm. It's fascinating and troubling in equal measure.
The deal, named Fox Hedge LP, has repackaged $5 billion of loans and other debts that were already owned by Apollo's funds and, through clever financial origami, turned them into bonds mainly for Athene to own, Bloomberg News reported this week.
