Apollo Warns of More Pain for Debt-Laden Companies Beyond 2021

Apollo Global Management Inc.’s Jim Zelter says there will be a new spike in defaults next year as some companies struggle to service the extra debt they took on during the pandemic.

An uneven economic recovery will keep companies in the travel, entertainment and lodging sector under pressure and could leave some of them insolvent in late 2021 and beyond, according to Zelter, who heads up Apollo’s $300 billion of credit investments.

“I suspect many companies were in a rush for liquidity and they added a lot of debt on to make sure they got through the troubled period,” ...