Marc Rowan: evaluation

Transcript context

…How did the macroeconomics of this new world work? If you don’t have much maturity-matching risk, you’re relatively insensitive to where interest rates are moving. If the Fed is controlling interest rates, say, to disinflate or for any other reason, it seems that matters much less than it used to. Do you agree? To us, yes, it matters much less than it used to. We run, in our retirement services business, a spread business, and in that spread business, the absolute level of rates is not all that important. What matters is that we are able to earn a spread on our assets versus our liabilities, versus our cost of operations, such that we are profitable and, therefore, can attract new capital, retain the capital we have, and provide investors with a reason to invest with us for the long term. But say more and more of the economy goes into relatively successful private credit. Doesn’t the Fed have to raise interest rates all the more? Because there’s no impact or no major impact on your lending and the lending of your peers, but there are still some banks out there, 20 percent. To get those banks to respond, does monetary policy become tougher and tougher to pull off? How do you think about this?…

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