Key Takeaways
- • Apollo Global Management has traded more than $35 billion in private credit since it began making markets in the asset class, according to John Cortese, partner and co-head of corporate credit.
- • The firm's private credit trading desk has handled about 500 assets across 160 counterparties.
- • Roughly one-third of the traded volume involved loans not originated by Apollo, signaling a broader secondary market role.
- • The disclosures point to a push toward greater transparency and liquidity in a historically opaque asset class.
Summary
Apollo Global Management has traded more than $35 billion in private credit since it began making markets in the asset, according to John Cortese, partner and co-head of corporate credit at the firm. Cortese disclosed the figures in an interview on Bloomberg Television, framing the activity as part of a broader transparency push in private credit markets.
According to Cortese, the desk has traded about 500 assets with 160 counterparties. Notably, about one-third of the volume involved loans that Apollo did not originate itself, indicating that the desk is acting as a market maker in assets sourced from other lenders rather than solely distributing its own origination.
The development matters for allocators because private credit has traditionally been difficult to price and exit, with limited secondary trading and infrequent valuation marks. A functioning market-making franchise with broad counterparty participation could improve price discovery and liquidity for institutional holders of these assets, though the primary source does not quantify pricing spreads, bid-ask levels, or the size of the overall private credit secondary market.
According to Cortese, the desk has traded about 500 assets with 160 counterparties. Notably, about one-third of the volume involved loans that Apollo did not originate itself, indicating that the desk is acting as a market maker in assets sourced from other lenders rather than solely distributing its own origination.
The development matters for allocators because private credit has traditionally been difficult to price and exit, with limited secondary trading and infrequent valuation marks. A functioning market-making franchise with broad counterparty participation could improve price discovery and liquidity for institutional holders of these assets, though the primary source does not quantify pricing spreads, bid-ask levels, or the size of the overall private credit secondary market.
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