What we're watching
What We’re Watching: The blurry line between co-dependence and independence
This month we discuss the role of independent agents in ensuring that governance standards in private markets are upheld. Citing the historical examples of Arthur Andersen, the credit rating agencies during the GFC and Link Fund Solutions we argue that these independent bodies are often beholden to the entities that they oversee with good governance starting at the entity itself.
Knowledge
Introduction to Private ABS: Securitisation Warehouses
Securitisation warehouses, a type of private asset-backed securities, are the pre-curser to public asset-backed securities. They can offer a substantial yield pickup over public markets and investors can gain attractive risk-adjusted returns and meaningful portfolio diversification benefits from this sub-asset class. What are securitisation warehouses?
In Trump’s world nothing is certain, not even taxes
The Trump administration is playing a dangerous hand, assuming that foreign investors and corporations have no choice but to remain in US markets.
What we're watching
What We’re Watching: Private credit, shelter from a tariff storm
As global tariff tensions simmer beneath the surface, private credit may offer relative shelter, particularly in Australia where exposure to trade related risks is lower. However, secondary impacts such as inflation and interest rate volatility remain important risks to monitor.
Report
Lessons from Liberation Day: Is now the right time to consider diversifying into securitised credit?
With recent market volatility, the risk-reward trade-off in traditional fixed income has become increasingly asymmetric. This article explores how floating rate securitised credit can offer a lower-volatility alternative to traditional fixed income strategies without sacrificing income.
What we're watching
What We’re Watching: Quarterly Report – March 2025
In the March quarterly report, we discuss the credit market reaction to tariff headlines identifying which sectors were most impacted by the volatility and which may yet be impacted.
Private credit needs to lift its game to be taken seriously
Private credit is not a passing trend. But if the industry doesn’t address lingering concerns, it risks being treated like one.
Insights from 20 Years in Credit Investing
Pete Robinson shares his insights on the evolution of Challenger Investment Management and the lessons that have shaped our approach to credit markets over the past two decades.
Market Reviews
ASIC turns up the heat on private markets
ASIC is increasing scrutiny of Australia’s private markets, citing risks like opacity, illiquidity, and conflicts in private debt investments. The regulator is also examining superannuation funds’ growing exposure to private assets, with some allocating up to 38% of their portfolios to this sector.
What we're watching
What We’re Watching: Why everyone should care about the California wildfires
The devastating California wildfires of January 2025 caused unprecedented economic and housing market impacts, with insured losses reaching up to US$75 billion and broader damages estimated at US$275 billion. As extreme weather events drive up insurance costs and reduce coverage availability, property values face mounting pressure, making risk assessment a crucial consideration for investors and lenders alike.
Market Reviews
European & Australian ABS: Rounding up 2024 and looking ahead to 2025
2024 was yet another positive year for the European & Australian Asset Backed Securities (ABS) markets with record issuance and continued robust performance and resilience. We review the year that was here, along with our key areas of focus for 2025.
Market Reviews
Uncertainty Weighs on UK Auto Lenders Due to Recent Court Rulings
UK auto lenders are currently grappling with significant issues due to recent rulings in court cases involving customers complaints regarding the lack of adequate information about commission fees when taking out a financing arrangement.