Apollo Global Management's insurance unit secured the second-largest position in the Federal Home Loan Bank (FHLB) borrowing system last year, trailing only a major bank. This development highlights the FHLB's evolving role as a critical, low-cost funding source for large financial institutions. The FHLB, originally created during the Great Depression to support mortgage lending, now serves as a key financing mechanism for banks and insurers seeking capital at favorable rates.

Apollo's significant borrowing underscores the system's continued importance despite regulatory scrutiny and debates over its structure.