Apollo’s Zito Says Bank Risk Deals Are the ‘Investment du Jour’

Apollo Global Management Inc.’s John Zito, deputy chief investment officer for its credit arm, said insuring bank balance sheet risk is the “investment du jour” — and one that the firm has been selective about.

The alternative asset manager has done very few deals, known as significant or synthetic risk transfers, in favor of bank transactions that serve their need for long-term assets and origination goals, Zito said Tuesday at the Bloomberg Invest conference in New York. He cited the firm’s acquisition of Credit Suisse’s structured products group as an example of Apollo’s approach.