What is the private valuation yield, and why should I check it when buying bonds?

The private valuation yield is the yield calculated by private bond valuation companies according to credit rating and other factors, and it is widely used as a reference for judging whether a bond's price is appropriate.

When you buy OTC bonds, the seller usually quotes a purchase yield lower than the private valuation yield (i.e., a higher price), taking into account costs such as personnel and IT. A difference that looks like a valuation loss right after you buy may be due to transaction costs, so compare the private valuation yield with your purchase yield.