Apollo’s Slok: Treasury Buybacks Cast a ‘Cloud’ Over Markets

Bullish Gator

Apollo economist Torsten Slok warns US Treasury buybacks cloud markets and discusses Fed policy outlook on Bloomberg.

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On Bloomberg The Close, Apollo chief economist Torsten Slok called the U.S. Treasury's strategic debt buyback program a "cloud" over markets, and he was pointing to something concrete. Treasury buybacks alter the supply of safe assets, nudge short-term yields and liquidity, and force asset managers to re-price duration and credit exposures. For Apollo Global Management (APO), a giant in credit and alternatives, those mechanics matter because they change mark-to-market swings, fundraising dynamics and the opportunity set for deployed capital over the coming quarters.