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'Danger signs are there of a future crisis: Apollo pro

Marc Rowan, senior managing director of Apollo Global Management LLC, speaks at the annual Milken Institute Global Conference in Beverly Hills, Calif., May, 2011.
Jonathan Alcorn | Bloomberg | Getty Images

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.

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"I do see many signs of the bubble of the futurethe 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.

Rowan said that there were still opportunities to invest—just not as many as immediately following the financial crisis.

"Now we're in the hard credit market, where we have to go originate, find it, scratch and claw, look for complexity, look for things that are misunderstood," Rowan said.

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—By CNBC's Lawrence Delevingne