Anna Kirkby, Investment Specialist at Fidante, looks at the benefits and risks from the growing asset class of private credit.
The Australian private credit market has grown considerably in recent years. This has been driven by a number of factors including changes to bank lending practices and regulations. Further, increased...
How the prices of goods and services have changed is not only an enduringly, topical conversation point, it offers a fascinating insight into society and the Australian economy. This article from the Australian Bureau of Statistics looks at how prices and their collection have changed over time to provide...
What is the difference between private debt and private credit? Not much, the terms are interchangeable according to these two industry experts.
Nayef Perry, Head of Direct Credit – Hamilton Lane
Why choose private credit?
Investors typically choose to invest in private credit based on consistency of performance over long periods, downside...
By Gaby Rosenberg, Co-Founder, Blossom
In the dynamic world of investment, the allure of fixed income assets has grown significantly as investors seek stable returns and diversified portfolios.
In this article, we explore how to get started from brokers and ETFs to expert-managed funds like Blossom. We’ll discuss bond risks and...
By Matthew Macreadie, Income Asset Management
A kangaroo bond is an Australia-dollar denominated bond issued by a non-Australian company in the Australian debt market to raise capital from Australian investors. In the pursuit of funding, these non-native issuers recognize the need to offer attractive terms to a less familiar audience,...
While you are considering investing in the ever-popular alternative investment space, there are several traps to be aware of before signing up for any investment. Risks exist in every investment opportunity — which is why you get a return greater than 0 per cent — but this doesn’t mean...
Private credit in the investing space is a growing market where senior secured debt, asset-backed lending, structured and project finance, mezzanine debt and other forms of unsecured debt happen and exist across a wide range of underlying asset classes.
Attractive returns are available in private markets through simply providing the...
Dispelling Popular Beliefs Summary
For fixed income investors, the current macroeconomic environment presents uncomfortable choices, with policymakers walking a thin line between combatting inflation and averting (or at least mitigating) the recessions that often follow rate rises.
Market participants face a slew of competing concerns:
Rising rates will hurt the asset...
Verdict
US Treasuries (UST) and US Investment Grade often generate flat to negative performance in periods of rising yields. But a number of fixed income sub-sectors have provided moderate-to-strongly-positive returns during rising-rate periods, though the factors supporting performance are changing over time.
Periods when UST yields are rising (used here...
Verdict
A risk-off stance in fixed income is broadly beneficial during recessions, minimising exposure to defaults. However, High Yield performance is not far behind Investment Grade, with the HY market typically recovering significantly earlier than the real economy.
Received wisdom for recessionary investing is to favour higher quality, longer duration asset...
