What we're watching
What We’re Watching: Review of 2024
Tis the season of outlooks and reviews. As we did last year, this month we’ll share some books, podcast and other things that have influenced our team’s thinking during 2024.
Knowledge
Introduction to Asset-Backed Securities
Asset-backed securities (ABS) are a type of structured credit instrument where bonds are backed by underlying pools of assets such as mortgages, loans or other corporate or consumer debt. A portfolio of comparable assets are grouped together and held by a Special Purpose Vehicle (SPV). These are then securitised with the bonds backed by the asset portfolio -sold to investors in the market.
What we're watching
What We’re Watching: Trump trade 2.0 – Who is going to buy all this stuff?
We examine what the new Trump presidency means for the US sovereign, discussing which parts of the private credit market are most exposed to the prospects of higher deficits.
What we're watching
What We’re Watching: September Quarterly Report
The September Quarterly Report highlights a divergence in credit market performance, with high yield appearing expensive relative to investment grade, while private markets offer more attractive opportunities amid increased scrutiny of default rates.
What we're watching
What We’re Watching: Lessons from the noughties: Fooling some of the people all of the time.
With so much focus on the topic of governance in private debt, this month we review David Einhorn’s classic story of the demise of a pre-GFC private lender.
What we're watching
What We’re Watching: The Olympics of Banking: and the gold goes to…
This month we compare Q2 banking results in the United States with the national champion CBA.
Market Reviews
Navigating the 2024 Landscape of UK & European ABS: Mid-Year Review and Outlook
In this article, Maddi Rowlatt explores the strong performance of the UK & European ABS markets in 2024, highlighting record issuances, stable credit performance, and robust demand. Gain insights into what lies ahead for H2 2024 and the market’s resilience.
What we're watching
What We’re Watching: Around the Grounds – Our quarterly review of markets
We provide our quarterly around-the-grounds perspective on public and private credit markets discussing the fastest start to the year for securitisation markets since 2007, the end of the Term Funding Facility and the ongoing issues in the US commercial real estate markets.
What we're watching
What We’re Watching: Interrogating the bull case for housing
This month we discuss whether the perceived imbalance between supply and demand in Australian housing markets is as substantial is it is made out to be.
Don’t hope for cuts, prepare for hikes
Pete Robinson joined Livewire’s 2024 Income series to discuss rate hikes from the RBA, what the market is missing and how it impacts opportunities in fixed income.
Knowledge
Private credit: Navigating the risks and rewards
In this episode of the Netwealth Portfolio Construction podcast, Paul O’Connor, Head of Investment at Netwealth, and Pete Robinson, Head of Strategy at Challenger Investment Management, offer insightful perspectives on the rise of private credit and the inherent challenges, such as lack of transparency, higher credit risk, and lower liquidity.
What we're watching
What We’re Watching: Assessing the “rizz” of the private credit market
This month we discuss whether the private credit market is losing some of its appeal. Demand seems to have peaked in the United States and there is evidence of tighter pricing and greater competition from public markets. We assess whether the same is true in Australia.