Insights
Staying opportunistic without chasing risk: Challenger IM’s approach to income investing
Pete Robinson shares his views on staying nimble through volatility, finding value in private credit, and why fair value always matters.
Insights
A flexible approach to income without interest rate risk
The Challenger IM Credit Income Fund aims to deliver RBA cash plus 3% per annum after fees through a blend of public and private short-dated credit, limiting exposure to interest rate and currency risk. By keeping loans short and offering monthly liquidity, the strategy provides income-focused investors with capital stability, flexibility, and access to private-market opportunities.
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 the Media
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.
In the Media
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
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.