Apollo Global Management has sparked industry debate by announcing daily valuations for its entire private credit business. Pimco has pushed back through a report by strategist Loti Karoui, who argues that "more frequent pricing is not more accurate pricing." The bond house suggests this approach won't improve liquidity or fix diverging valuation marks plaguing private credit funds.

The divergence in private credit valuations has widened significantly over the past two years, with many funds marking assets at almost par until borrowers default. Pimco notes the Financial Accounting Standards Board gives asset managers considerable latitude in valuing illiquid Level 3 assets, pointing out "for loans priced with a higher range than two points, the distribution is skewed to the upside."

Despite public disagreement, Apollo's CEO Marc Rowan appears aligned with Pimco's long-term vision. Apollo has partnered with Intercontinental Exchange to standardize market data, is working to assign CUSIP codes to its private assets, and is developing a market-making role, suggesting both firms recognize the need for greater transparency.