With a 5-year term, AMAPS notes target an intermediate maturity. We are also developing longer duration variations of the AMAPS format (APADS) to address both the long-term asset needs that exist for insurance balance sheets, as well as the long-term capital demands of the global industrial renaissance.
The AMAPS Market
Similar to CLOs, AMAPS provides a transparent view of underlying collateral for investors, and each tranche has its own CUSIP. AMAPS notes are priced and traded daily in a liquid secondary market.
Like many innovations, we built the AMAPS product to address a specific need. For Athene, we wanted a modern CLO providing efficient access to higher quality collateral and safe yield, with less structural leverage. Today, significant holders of AMAPS include some of the world’s largest sovereign wealth investors, institutional investors and third-party insurers. These investors not only seek to address their risk/return needs but also value the alignment that comes with investing alongside Apollo or Athene, which is a significant investor in each of the underlying AMAPS tranches.
While we believe Apollo was uniquely situated to be a first mover in AMAPS as a manager of long-term capital with decades of asset-backed structuring expertise, we fully expect that over time this market will grow similarly to CLOs. This will mean multiple issuers of MAPS-type securities, and we are in discussions with third-party managers who want to create their own versions of MAPS. This should serve to generate attractive high-grade debt for investors and contribute to long-term market development.
