Market Navigator: Are credit fears overblown?

Core Viewpoint - The alternative asset management sector, including firms like KKR, Apollo, and Blackstone, has faced significant stock declines recently, but there are indications that better days are ahead due to strong inflows and positive earnings reports [1][5]. Group 1: Market Performance - KKR and Apollo stocks have decreased by 18% in the last 90 days and are also lower for the year [1]. - Blackstone reported strong earnings, with $35 billion in inflows into private credit for the quarter, although the stock saw a slight decline due to investor expectations for more growth in its real estate business [5]. Group 2: Investment Trends - The alternative investment management firms are experiencing significant inflows quarter after quarter, indicating continued investor interest and confidence in their performance [3]. - The broader credit quality across these managers remains strong, despite concerns about specific sectors like subprime auto lending [6][7]. Group 3: Economic Context - The subprime auto sector has faced challenges for several years, but the overall credit spectrum and broader economy are still performing well, as evidenced by recent bank earnings [7][8].