Another credit bubble is being inflated, according to a senior private equity executive.
"We're back to doing exactly the same things that were done in the credit markets in the crisis," Marc Rowan, co-founder of $161 billion Apollo Global Management, said Tuesday at the Milken Institute's Global Conference in Los Angeles.
"Covenants have been stripped away, cov-lite is the norm, senior debt levels are actually higher than they were in 2007, although total debt is not quite where it was," Rowan said, noting looser lending terms given to borrowers.
"I do see many signs of the bubble of the future—the default specter that you're talking about. I agree that short term we're not likely to see that, but all the danger signs are there of a future crisis," he added.