YouSaid · the spoken record

Marc Rowan

lines on the record: 76
first: 2024-03-06
most recent: 2024-03-06
sittings or episodes: 1
sources: podcast

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“Well, language wise, I'm 1,200 days into Spanish, and so I now need to go spend thirty days someplace where people just talk to me in Spanish, and I think I have a chance.”
2024-03-06 · Conversations with Tyler · Marc Rowan on Financial Market Evolution and University Governance · IDENTIFIED FROM THE TRANSCRIPT · source
“Each one is different, so Montauk, as I've suggested, is a very traditional Cape Cod style orient point mixes a North Fork style with tidbits of Mickinos, and what's been done there, and Lulu could be on the main drag in Tel Av”
2024-03-06 · Conversations with Tyler · Marc Rowan on Financial Market Evolution and University Governance · IDENTIFIED FROM THE TRANSCRIPT · source
“Think of Satrop ⁇ meets Cape Cod. 70% of it is some form of lobster, which of course I don't eat, but that's a whole other story.”
2024-03-06 · Conversations with Tyler · Marc Rowan on Financial Market Evolution and University Governance · IDENTIFIED FROM THE TRANSCRIPT · source
“No, it's not true. I mean, I think about the decisions we've made out in Montauk where reputationally we've decided only to serve wine and beer, no hard liquor. Could we make more money serving liquor? Absolutely. But it's not how we run. People want to come there for the experience, and we do just fine on the food as well.”
2024-03-06 · Conversations with Tyler · Marc Rowan on Financial Market Evolution and University Governance · IDENTIFIED FROM THE TRANSCRIPT · source
“I actually learned that the restaurant business is a better business than most people give it credit for. And I make the following observation. It is the restaurant business. Most people who go into the restaurant business don't know anything about the business side of restaurants. Most people who go into the business are undercapitalized and therefore the first time that they experience some sort of difficulty, they go under. And also, a lot of it is very parochial. People haven't traveled the world to see what's out there. The best thing I've learned is find the right partner who knows something about running a restaurant because I know nothing about running a restaurant, but I know a lot about business.”
2024-03-06 · Conversations with Tyler · Marc Rowan on Financial Market Evolution and University Governance · IDENTIFIED FROM THE TRANSCRIPT · source
“Three, another, as I Two under the name Dury's, one in Montauk, one in Orient Point, and then Lulu on the Main Street in Sagar.”
2024-03-06 · Conversations with Tyler · Marc Rowan on Financial Market Evolution and University Governance · IDENTIFIED FROM THE TRANSCRIPT · source
“They need to go to the desert by a lot. Of the things that I do, and I don't do all that many things well, but of the things I do well, age adjusted, I mountain bike pretty well. In Timna Park, near a lot is a landscape that is pretty Desert, rock, sand formations, unbelievable. And beautiful new hotel there, also.”
2024-03-06 · Conversations with Tyler · Marc Rowan on Financial Market Evolution and University Governance · IDENTIFIED FROM THE TRANSCRIPT · source
“For changes in academia. So I can imagine the status quo is going to hold that 20 years from now, we're going to have professors standing in front of classrooms doing what they do. The tools are just so different. The amount of intelligence that people can gather from outside the class and research is so different. What do they need to know? To figure out what's true. Critical reasoning, how to use the resources and apply critical criteria to those resources is the memorization of dates and times and places and orders all that important? Probably not. Critical reasoning context.”
2024-03-06 · Conversations with Tyler · Marc Rowan on Financial Market Evolution and University Governance · IDENTIFIED FROM THE TRANSCRIPT · source
“That's the punchline. So how? We have to teach the state curriculum with state teachers the only way we can do this is we can teach it any way we want to teach it. If you go into a darker school, you are unlikely to find a teacher standing in front of a classroom in any class. Technology has been brought into the classroom, new ways of teaching has been chronic, experimentation has been brought into the classroom, games have been brought into the classroom. We trial lots of things and we double down on those things that work. We are essentially a laboratory.”
2024-03-06 · Conversations with Tyler · Marc Rowan on Financial Market Evolution and University Governance · IDENTIFIED FROM THE TRANSCRIPT · source
“It stayed the same. It's not like technology. So I'll give you an analogy to what's happening. I am involved in academia in Israel for the past 38 years. I have either chaired or co-chaired what has become Israel's best private school network. Public charter is probably a better way to describe it. We're 50 schools, where roughly 30,000 kids in school, we're 3,000 teachers. We only work in the periphery of Israel. Ethiopians, Eumenes, Druze, Bedouin, Eastern Europeans. And we use union teachers. We teach the state curriculum. And our kids from these poor neighborhoods who have a historical track record of not performing are now performing at among the best levels in Israel. Overall, the network is roughly 90% matriculation rate for their Bagroot, their university test. And we've wholesale change communities.”
2024-03-06 · Conversations with Tyler · Marc Rowan on Financial Market Evolution and University Governance · IDENTIFIED FROM THE TRANSCRIPT · source
“What do you need to learn? If you think about how much the world has changed, The world has changed massively in almost every sector? Not so much in academia, we still have professors standing in front of classrooms, and while the tools are better?”
2024-03-06 · Conversations with Tyler · Marc Rowan on Financial Market Evolution and University Governance · IDENTIFIED FROM THE TRANSCRIPT · source
“Continue. I say to them, I said, Well, you don't know how many of you there are. If you're a Wharton faculty member, what are you interested in? You're interested in academic excellence and research. If you're an engineering faculty member, same thing. If you're a doctor in the med school, you're a professor. Same thing. There's such a large group that is actually interested in getting to the core mission of a university? Academic excellence in research. And without a guiding set of principles Every day the university is facing some sort of crisis. Where do they stand on free speech? Are there any limits to academic freedom? What is the goal of the university? Is the university viewpoint neutral? There is no policy, and in the absence of policy, many things seem arbitrary.”
2024-03-06 · Conversations with Tyler · Marc Rowan on Financial Market Evolution and University Governance · IDENTIFIED FROM THE TRANSCRIPT · source
“The answer is, I think it's career risk. I do think that they've bet their careers on achieving tenure and achieving the notoriety or reputation amongst their colleagues, and they're loath to lose that. So what's been interesting about this entire process, the number of professors, department heads, department chairs who have reached out and just said thank you. Thank you for saying what needed to be said.”
2024-03-06 · Conversations with Tyler · Marc Rowan on Financial Market Evolution and University Governance · IDENTIFIED FROM THE TRANSCRIPT · source
“Actually, provided a roadmap for the president to be judged against. So it does not surprise me when confronted with difficult situations that there was no guide. I can't imagine that's a recipe for success. And so my own view, and this is what I've written at UPen, is trustees should first answer fundamental questions about policy and where they want the university to go in partnership with their academic peers, because the academy also has a series of rights and responsibilities. And once the university knows where it wants to go, higher the next president against a business plan, a strategic plan, as to what they should do and what they should accomplish, it's unfair to leave them directionless. Now, fortunately, UPAN is in a very good place right now, as a very stable pair of hands in Iraq Jameson, who's the interim president.”
2024-03-06 · Conversations with Tyler · Marc Rowan on Financial Market Evolution and University Governance · IDENTIFIED FROM THE TRANSCRIPT · source
“I think boards have to be of a level where people can actually have a debate. And said a series of guidelines. And like every board of directors, they are not doing and micromanaging these universities, just like boards of directors do not micromanage companies. They set strategy. They set tone. They set policy. And they pick a leader. So imagine if you were the past president of the University of Pennsylvania. You arrive after two very long serving presidents. You are hired by this board of trustees, and you go to work. What's your goal? What's your plan? How is success judged? What's the university's policy on viewpoint diversity? What's the university's policy on free speech? The Board of Trustees, myself included. We never”
2024-03-06 · Conversations with Tyler · Marc Rowan on Financial Market Evolution and University Governance · IDENTIFIED FROM THE TRANSCRIPT · source
“No one tells you that. The boards don't behave any differently. With fifty members, it's very difficult to engage in substantive debates, and for the most part, and I put myself in the negatives here as well, trustees have actually not fulfilled their duties. So if you take UPenn as an example, UPenn's charter is actually quite interesting. If you look at the questions that I've written to the trustees about and questions that I think they should answer in thinking about where the university goes and how they choose the next president, those are for the most part not questions that Mark Rowan dreamed up. These are questions posed directly from Penn's charter. Trustees are supposed to set standards for admission. They're supposed to set standards for faculty promotion. They're supposed to set a strategy for the school.”
2024-03-06 · Conversations with Tyler · Marc Rowan on Financial Market Evolution and University Governance · IDENTIFIED FROM THE TRANSCRIPT · source
“Guilty is charged. So I was, and I've been very public in this. I was a member not just of the chair of the Wharton Board, but also a trustee of the University of Pennsylvania. There were approximately 50 trustees. And the way you get to be a trustee for the most part is you put in service at one of the other boards, and then you are graduated over time to the trustee board. Every other board at a university is a non-fiduciary board. It's an advisory board, including the board that I chair at the University of Pennsylvania's Wharton School. It's an advisory board. When you move to the trustees, you actually become a fiduciary.”
2024-03-06 · Conversations with Tyler · Marc Rowan on Financial Market Evolution and University Governance · IDENTIFIED FROM THE TRANSCRIPT · source
“Therefore, it tells me we're not a great equity investor in India other than around the margins. On the other hand, in the banking system, banking system is very low cost, and if the bank is willing to supply something, we should let the bank do it and not compete with them. So our business plan in India is to be between equity and between bank, because there is virtually nothing that exists of size and scale. So when Adani buys the Mumbai airport, we lend him seven hundred fifty million US. When families in Mumbai want to consolidate their real estate holdings, we lend them four hundred million US. There's a lot of business to do, but it is not. We can go there and say we're in the equity business or we're in the bank debt business, but that's not the opportunity. It's also not the opportunity in most of Asia.”
2024-03-06 · Conversations with Tyler · Marc Rowan on Financial Market Evolution and University Governance · IDENTIFIED FROM THE TRANSCRIPT · source
“Biggest obstacle is just capital markets. I'm not sure we're going to deploy all that much in India. So if I think again about the Indian economy, like many other Asian economies, you have equity and you have bank debt. So now I'll talk about our strategy, particularly in India. It used to be that we were there supplying equity, but guess what? Local Indian entrepreneurs, the wealthy families, they have amassed significant amounts of capital. There is no shortage of equity in India. And my guess is if there's an interesting opportunity in India, we would not be the first ones to see it.”
2024-03-06 · Conversations with Tyler · Marc Rowan on Financial Market Evolution and University Governance · IDENTIFIED FROM THE TRANSCRIPT · source
“It's just an incredible labor pool. We have a place that grew up as a back office for everyone, where it's now just become another office. The English speaking, the time zone, the work ethic, quality of people. And we're scaling almost every business in India. Professional businesses, risk businesses, technology businesses, and what you would consider traditional back office. It's all happening.”
2024-03-06 · Conversations with Tyler · Marc Rowan on Financial Market Evolution and University Governance · IDENTIFIED FROM THE TRANSCRIPT · source
“I really don't think that because we as a firm, we've branched out so much, and I'm sure the other firms have branched out as well, which is yes, when we started, it was easy to hire from a core number of schools into the private equity business, and it was very self selecting, so I came from the University of Pennsylvania, and it would not surprise you that when I ran recruiting, 50% of the firm came from the University of Pennsylvania. Then we democratized. We had a few people from Duke and a few people from Virginia. And now it is complete democratization from all over the country, all over the world. The fastest growth in our business right now is taking place in India. And people say, well, that's back office. No, it's just an office. We're 500 people in Mumbai. We'll be a thousand people in Mumbai in three years. And those people are coming from all over the world.”
2024-03-06 · Conversations with Tyler · Marc Rowan on Financial Market Evolution and University Governance · IDENTIFIED FROM THE TRANSCRIPT · source
“I take the least bad alternative on Monday. The same on Tuesday and the same on Wednesday. So my job in the credit business is to create more lease bad alternatives, to create more origination, to create more diversification, to create more options. Because I know if I'm serving insurance companies, our own insurance company or someone else, a thing needs six or seven billion dollars a month. What I need to create. And so it's two different speeds of looking at the business. It's two different ways of thinking. But I also want people to know that in the equity business, hours of boredom follow my moments of terror.”
2024-03-06 · Conversations with Tyler · Marc Rowan on Financial Market Evolution and University Governance · IDENTIFIED FROM THE TRANSCRIPT · source
“So, the context is I was talking about the difference between being an equity investor and a debt investor. So in the private equity business, you work incredibly hard. But if you look at what we do as a firm, and we're one of the largest in the private equity area, we make 10 or 20 decisions a year. Everything else is ceremony. And so hours of boredom follow by moments of terror when you actually have to decide. But if you think about that business, if I come in on Monday and I don't like what I see, I go home, Tuesday, same thing. And I keep doing that until I like what I see, and then I make an investment because I'm only making ten or fifteen investments a year. And now I'll contrast that with the credit business. In the credit business, I come in on Monday.”
2024-03-06 · Conversations with Tyler · Marc Rowan on Financial Market Evolution and University Governance · IDENTIFIED FROM THE TRANSCRIPT · source
“A number of years after someone's here, whether they possess that ability, which is to bring all their outside influences, their knowledge of what's going on in the world to bear in the business, along with relationship. At the end of the day, this is a complex business, but it's also a really easy business. People do business with people they like Are you likable? Are you relatable? Are you good at building relationships? Having the right answer is helpful. Being able to convey that answer in a way that someone else will absorb and to engage in a dialogue with them, much more important.”
2024-03-06 · Conversations with Tyler · Marc Rowan on Financial Market Evolution and University Governance · IDENTIFIED FROM THE TRANSCRIPT · source
“And at Drexel, we financed companies where there was a non-zero chance their business would not exist. You spent an awful lot of time thinking about the future, the business plan, the specifics. We were not banking Exxon. Exxon was there then, it's there now. That's a process of maximizing the efficiency of Exxon's particular corporate action that's needed Something that forces you to think about where something is going, whether the business will exist, how things will change, how you make capital commitments in the context of uncertainty. Is really what you want to see. You don't see that in a 22 year old because you see them as masters of their craft. You don't actually know.”
2024-03-06 · Conversations with Tyler · Marc Rowan on Financial Market Evolution and University Governance · IDENTIFIED FROM THE TRANSCRIPT · source
“So they have to love their job. You can't fake this job for very long. You know, people say, isn't it really hard? Isn't it, you know, take over your life and everything else? Absolutely. And so if you don't like it, this is probably not a good place for you. At the end of the day, though, being able to take a blank piece of paper And think about what's not there. Is the skill that gets them from mastery of numbers, of analytics, to actually decision making? And I think back, and I'll relate it personally for me, I started at Drexelburn.”
2024-03-06 · Conversations with Tyler · Marc Rowan on Financial Market Evolution and University Governance · IDENTIFIED FROM THE TRANSCRIPT · source
“Specific decision, the amount of change, or whether it has to be prepped in a certain way. We are not chess pieces that can be moved around. And I just got back from an off-site with all 201 Apollo partners in Abu Dhabi. Really interesting way to get together, three most valuable days of the year for me. First thing I said, a small group of us cannot run this business. There are too many important decisions to your point that are taking place. That I will never see and that I could never absorb. I have to get the buy in. 200 people to successfully run this organization. And so when I present or the leadership here presents a strategic plan, we're in debate mode. There's very little that gets done in the way of dicta here.”
2024-03-06 · Conversations with Tyler · Marc Rowan on Financial Market Evolution and University Governance · IDENTIFIED FROM THE TRANSCRIPT · source
“No one gets tired to make major decisions right away. So let's start with that. I will say jokingly, your first year at Apollo is mostly useless. Your second year you're at 30% capacity. By the third year, you feel like you've been here 10 years. We have lots of smart people, and there are lots of smart people in financial services. This is about cultural fit. It's understanding where we're going. And whether the organization can absorb”
2024-03-06 · Conversations with Tyler · Marc Rowan on Financial Market Evolution and University Governance · IDENTIFIED FROM THE TRANSCRIPT · source
“When it comes to the arrangement of people's offices, to say you're welcome to take mine. And I think that culturally, leadership here has embraced it. We now sit not with each other. We sit with our teams. We are spread throughout this building.”
2024-03-06 · Conversations with Tyler · Marc Rowan on Financial Market Evolution and University Governance · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, first, you're going from a very low bar to a much better situation. We were spread throughout this office building on non contiguous floors with separate cafeterias in what I would call traditional executive offices for the more senior people and bullpens for the more junior people. Nothing that I've just said is now true. We are now in a contiguous low rise of this building on nine contiguous floors all connected by staircase. We have lots of places where casual collisions take place. We have our coffee bar, we have our cafeteria. And for the most part, we've become much more egalitarian with respect to offices. One of the things that I've done when I took over as CEO, I have a windowless office off the trading floor. And next to me is J. Clayton, former head of the SEC. He has the same size windowless office. It's given me tremendous moral.”
2024-03-06 · Conversations with Tyler · Marc Rowan on Financial Market Evolution and University Governance · IDENTIFIED FROM THE TRANSCRIPT · source
“I worry less about the look and feel of the office. I think an office is an internal thing. Does it encourage the kind of collaboration, the kind of working environment that you ultimately want for a company? I look at, you've just come from our cafeteria, and the productivity increase that we've experienced from the casual collisions. People seeing each other every day. Needs to happen inside a physical space in this office. Does the exterior of the building really matter to me? No, not really.”
2024-03-06 · Conversations with Tyler · Marc Rowan on Financial Market Evolution and University Governance · IDENTIFIED FROM THE TRANSCRIPT · source
“Don't know. I mean, certainly I look at the places where you have population increases. Most of what I've seen that I really like, Austin, Texas. We're going to have a whole new neighborhoods in Austin, Texas, places that are physically beautiful, that were just outside the core and now are being built. Again, we can say that's progress or not progress. If you're commuting into the downtown Austin, you're not so excited about that. But I think in places that are still growing, it is pretty dynamic.”
2024-03-06 · Conversations with Tyler · Marc Rowan on Financial Market Evolution and University Governance · IDENTIFIED FROM THE TRANSCRIPT · source
“So, to see what's happening in Riyadh in Duria, which is their traditional neighborhood, nine million people on the way to 13 million people to see what's going on in Abu Dhabi on Museum Island, in Sadiat, and other places. The scale of ambition there? Actually, quite impressive. I don't love everything, but I am impressed of their ability to get things done. And to actually re envision on a grand scale something we really haven't done in this country in a very long time.”
2024-03-06 · Conversations with Tyler · Marc Rowan on Financial Market Evolution and University Governance · IDENTIFIED FROM THE TRANSCRIPT · source
“You got here first. Whoever got here first took the good physical location. I think we're in a rebuilding mode, certainly in most of this country, and certainly in Western Europe. There are beautiful things in beautiful neighborhoods being created. I'm back from twelve days in the Middle East. We can like or not like the style of what's being built, but the scale, the ambition, the new neighborhoods, the ability to create new is extraordinary.”
2024-03-06 · Conversations with Tyler · Marc Rowan on Financial Market Evolution and University Governance · IDENTIFIED FROM THE TRANSCRIPT · source
“Had to be redone, visually it's held up beautifully. Every surface that was everything that was used to build in the 1970s is now gone. It's been rebuilt in the traditional, in the same style, but with new materials and new techniques”
2024-03-06 · Conversations with Tyler · Marc Rowan on Financial Market Evolution and University Governance · IDENTIFIED FROM THE TRANSCRIPT · source
“The answer is I don't know that I would have chosen it, but there's something about it that I just found incredibly appealing. This was a full apartment built with no right angles. Everything curved. In very simple materials, but very beautiful materials.”
2024-03-06 · Conversations with Tyler · Marc Rowan on Financial Market Evolution and University Governance · IDENTIFIED FROM THE TRANSCRIPT · source
“So, I don't know that I would say I'm interested in brutalist architecture, but I am interested in building things, for whatever reason, I am not a collector of anything. I don't collect wine, I don't collect art, I don't collect cars, but I do like building things and have always liked building things, starting from my late 20s when I built my first house. I built lots of houses, lots of restaurants, lots of stores, small office buildings, and I just keep going. Whatever itch it scratches, I find it to be just an incredibly creative outlet, really enjoyable, and everyone always says, don't you get aggravated building these things? And I said, well, only if you have to move in on a certain date. But if you're flexible as it relates to brutalist architecture, you're referring to the apartment in New York City.”
2024-03-06 · Conversations with Tyler · Marc Rowan on Financial Market Evolution and University Governance · IDENTIFIED FROM THE TRANSCRIPT · source
“You know, I kind of take it from the concierge at wherever I'm staying. I look for one traditional Japanese experience and one, give me the latest, newest, greatest because Japan does create new and great in addition to traditional.”
2024-03-06 · Conversations with Tyler · Marc Rowan on Financial Market Evolution and University Governance · IDENTIFIED FROM THE TRANSCRIPT · source
“Patience. He was just a remarkable individual, multilingual, a Torah scholar, just had incredible amounts of patience and humility.”
2024-03-06 · Conversations with Tyler · Marc Rowan on Financial Market Evolution and University Governance · IDENTIFIED FROM THE TRANSCRIPT · source
“I was living in South Florida. I would come to New York for the summer. And he was a labor arbitrator. And so I would come work for him the summer. He would dump a bunch of briefs on me. And I would summarize the arguments, and then I would debate the cases with him, and then he would go off and write the opinions. So it was a pretty good way to get a good view of the world as between labor and management.”
2024-03-06 · Conversations with Tyler · Marc Rowan on Financial Market Evolution and University Governance · IDENTIFIED FROM THE TRANSCRIPT · source
“Again, I want to stick to that, which I think I'm good at. So over the horizon as a country, as a matter, probably not. The population projections I have seen for lots of places in the world are just shocking. But in the little corner of the universe that Apollo participates in A 10 year period, a 20 year period is not really all that different than it is today.”
2024-03-06 · Conversations with Tyler · Marc Rowan on Financial Market Evolution and University Governance · IDENTIFIED FROM THE TRANSCRIPT · source
“Fabulous reinsurance market. So between my love of culture, my love of the food, the need for safe yield, and the need for reinsurance capital, it feels like a highly productive place to be.”
2024-03-06 · Conversations with Tyler · Marc Rowan on Financial Market Evolution and University Governance · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, first, Japan is an amazing place, as you know. It's just so different. And I'm surprised by something every time I'm there. But as a financial matter, you look at a society that is older, that has needs for retirement, that has lived through repressed yields for more than twenty years. And so you have a yield star of society in an older population nearing retirement. They need yield. They are very comfortable in dollars. And to the extent we are providing safe yield, total return, investment grade private credit, whatever buckets you want to talk, Japan is absolutely the perfect market for what we do. And I think it's a matter of education. And that education is taking place. Japan also has an insurance industry that is in the middle of a capital transition, has had a very, very difficult time raising capital. And so that's also”
2024-03-06 · Conversations with Tyler · Marc Rowan on Financial Market Evolution and University Governance · IDENTIFIED FROM THE TRANSCRIPT · source
“I'll give you my uneducated spectator from the sideline view things like stable coins, things like OnRamp, things that are convertible back into fiat currency are absolutely going to play a view. I see every opportunity for them to reduce the cost, to reduce the friction of dealing with the financial system to be an amazing on-ramp for the US, I don't really see in a KYC AML world a value of an alternative currency. If you're in other parts of the world, Maybe an alternative currency has more appeal”
2024-03-06 · Conversations with Tyler · Marc Rowan on Financial Market Evolution and University Governance · IDENTIFIED FROM THE TRANSCRIPT · source
“So we have this example, we have solvency two in Europe. Solvency 2 in Europe has been terrible for the retirement services industry. Capacity, just the mere availability of product is down almost 40%. That's an outcome. That's not the outcome we've chosen. And the question and credit at the end of the day, which is really what we're talking about, credit is a function of GDP. If you want GDP, credit can only come from two sources. The government-backed government guaranteed borrow shortland long banking system or the investment marketplace. There's no third choice. Make your choice. If we want less GDP, That's a choice. It doesn't seem like a good choice given the other options that are available.”
2024-03-06 · Conversations with Tyler · Marc Rowan on Financial Market Evolution and University Governance · IDENTIFIED FROM THE TRANSCRIPT · source
“There's no ALM mismatch. There's more investment grade. And there is appropriate state-based regulation for institutions that do not have government guarantees or borrow from the Fed or do anything else. Insurance is very slow moving. We're talking about on average 10-year assets. This is a very slow moving process. And again, most of the issues that have happened in the insurance industry have not been asset issues. They've been liability issues. Exactly the kind of thing that insurance specialist regulation is designed to detect.”
2024-03-06 · Conversations with Tyler · Marc Rowan on Financial Market Evolution and University Governance · IDENTIFIED FROM THE TRANSCRIPT · source
“I can't tell you there's not risks in the economy. We have a choice. We can have risk dispersed among lots of institutions or we can have it concentrated in the government-backed borrow shortline long, government guaranteed banking system. Every time we disperse that risk, we make the system more resilient. If you want to focus on insurance, which is your question and political equilibrium, there's more capital.”
2024-03-06 · Conversations with Tyler · Marc Rowan on Financial Market Evolution and University Governance · IDENTIFIED FROM THE TRANSCRIPT · source
“And does not do liquidity transformation or maturity mismatch. And they are forced to hold amounts of capital. So if you look, and I'll give you a comparison just for us, not for the whole industry, who holds more capital, Athene, our insurer as a percentage of assets or the typical bank. You would think the typical bank, but you would be wrong. We hold more capital per dollar of assets than anyone else. Who holds more investment grade assets? 90% of our book is investment grade. The typical bank is two thirds.”
2024-03-06 · Conversations with Tyler · Marc Rowan on Financial Market Evolution and University Governance · IDENTIFIED FROM THE TRANSCRIPT · source
“Regulated, mutual funds are regulated. Are they disclosed and transparent? Yes, they're disclosed and transparent. The holdings of a mutual fund are completely visible and they're delevered. Is that a risky activity because it moved out of the banking system and into a mutual fund? I don't think so. I actually think it has de-risked. It's made our economy and our financial system more resilient. So now I'll come to your question on political equilibrium. Insurance, if you just focus on insurance has no federal guarantee, does not borrow short and lend long, has no access to the Fed.”
2024-03-06 · Conversations with Tyler · Marc Rowan on Financial Market Evolution and University Governance · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, first, I would have to correct almost everything you've said along the way to set the table for what I'm going to talk about. So first, the difference between not so much the banking system and insurance, but the banking system and the investment marketplace. There are plenty of ways. Let's start with this. There are plenty of ways for investors to lose money. Investors can buy speculative stocks. They could buy the S&P. They can speculate in almost anything. So the making or losing of money is not in and of itself a systemically risky activity because we allow, and for good reason we allow, speculative investing every single day. Things go up, things go down. You can lose money in credit as well as in equity. Now we come to mutual funds. If a mutual fund, which is daily liquid, owns credit and investors want to get their money back, you're right, price just adjusts. Mutual funds are not price guaranteors.”
2024-03-06 · Conversations with Tyler · Marc Rowan on Financial Market Evolution and University Governance · IDENTIFIED FROM THE TRANSCRIPT · source