Pimco Challenges Daily Asset Pricing in Private Credit Market
Pimco Scorns Daily Marks on Private Assets That Apollo Heralded
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Pacific Investment Management Company (Pimco) strategist Lotfi Karoui criticized the push for daily asset pricing in the $1.8 trillion private credit market, arguing it does not enhance true liquidity or transparency. Apollo Global Management is increasing daily pricing for over $830 billion in credit assets, but Pimco warns of widening price discrepancies among similar assets.
- 01Pimco's Lotfi Karoui argues daily asset pricing does not improve liquidity or transparency.
- 02Apollo Global Management plans to price over $830 billion in credit assets daily.
- 03Karoui highlights significant price discrepancies among similar assets in the market.
- 04The private credit market is valued at approximately $1.8 trillion.
- 05Pimco remains cautious about risks in direct-lending markets.
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Pacific Investment Management Company (Pimco) has expressed skepticism regarding the effectiveness of daily asset pricing in the private credit market, valued at $1.8 trillion. Strategist Lotfi Karoui stated that while efforts to increase liquidity are appreciated, they do not address fundamental issues like the lack of true price discovery. Apollo Global Management recently announced that it will implement daily pricing for more than $830 billion of its credit assets by the end of September, aiming to enhance market transparency. However, Karoui noted that price discrepancies for similar assets have widened, with marks for identical instruments averaging about five points apart, raising concerns about fair value determinations. Pimco has been critical of the private credit sector, focusing on potential risks in direct-lending markets.
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