Insights

Our quarterly perspective on public and private credit markets, APRA’s stance on bank capital and the ongoing pressures facing the non-bank lending sector.

We discuss warehouse lending, a sector which is receiving greater interest from global private credit investors despite not being particularly well understood.

We discuss how many companies are still suffering the after effects of the COVID pandemic making them particularly susceptible to the combination of a slowing economy and persistently higher interest rates.

We provide our quarterly around-the-grounds perspective on public and private credit markets covering the sharp rebound in financial credit, signs of stress in corporate credit markets and the worsening outlook in commercial real estate.

In this article, Sid Kumar, Head of Acquisition Finance at Challenger Investment Management discusses how lenders are getting some of the balance back when it comes to private credit investing in current macroeconomic conditions in Australia. Kumar highlights tightening lending conditions, stricter loan requirements, and the importance of selecting experienced managers to navigate through uncertainty.

This month we compare Australian commercial real estate loans with the United States, assessing which of the two markets are most acutely impacted by the higher interest rate environment as well as looking to where we may see opportunities in the quarters to come.