Strategy for credit investing and market turbulence

 

03 NOVEMBER 2022

 

Now might be the best time for credit investing in a generation, according to Frank Danieli, our Head of Credit Investments and Lending, but it's also a time to be cautious and ensure your portfolio is focused on high quality assets that will be resilient through ongoing market volatility.

 

Frank discussed how investors can capitalise on these thematics without risking their portfolio during his regular appearance on ausbiz with Andrew Geoghegan this week. They also discussed some emerging opportunities in credit which might arise from the federal budget handed down last week, despite its fiscal tightening agenda.

 

 

 

Impact of higher funding costs for lenders

 

19 OCTOBER 2022

In the past few weeks, UK pension funds and other global investors have been rapidly auctioning off around $1 billion of Australian mortgage and asset backed securities.

Many investors are wondering why. More importantly, what does this ‘fire sale’ mean for Australia’s credit markets, borrowing costs and lending conditions. Is it a threat or are there opportunities at play?

Frank Danieli, Managing Director and Head of Credit Investments and Lending, answers these questions and more during his regular appearance on ausbiz with Andrew Geoghegan.

 

 

 

Treasury yields tumble after downtrend in manufacturing

 

 

5 SEPTEMBER 2022

Is it time to be greedy when others are fearful?

Bonds and traditional fixed income are experiencing their worst performance in decades following aggressive rate moves by central banks. Is there opportunity amongst this chaos? Alternatively, is it time for investors to look beyond bonds for the defensive part of their portfolio including towards high quality, private market, floating rate credit investments that may offer protection in the current market.

And in a rising rate environment, is there a risk that higher funding costs will create a class of over-leveraged, zombie companies as central banks continue to pursuing a tightening cycle? What does this mean for investors?

 


 

A private market view on national-building

07 SEPTEMBER 2022

There is ongoing debate about the role Australia’s $3+ trillion superannuation system can play in financing ‘nation building’ initiatives, from social housing to decarbonising the economy and lending to local businesses to unlock growth.

Is this only a theme for large institutions like super funds or are there worthwhile opportunities for private investors to participate?

Managing Director Frank Danieli was asked about this topical issue during his regular appearance on AusBiz with Andrew Geoghegan.

In addition to explaining why he thinks the current debate is “a little bit upside down,” Frank also discussed with Andrew how investors can earn compelling risk-adjusted returns while gaining exposure to secular thematics like funding Australia’s growth, business investment in ‘onshoring’ and the sustainable energy transition through private credit.

 


 

Lessons from global earning season for Australian financials

09 AUGUST 2022

US half-year earnings season is nearing its end, while in Australian companies are just beginning to report. What lessons can be gleaned from global companies about the outlook for Australian consumers and businesses? And what does this mean for credit investors, banks & financial institutions in our market?

In today’s bi-weekly Tuesday morning interview with Ausbiz, Frank Danieli, Managing Director and Head of Credit Investments and Lending, discussed this topic with Andrew Geoghegan.

They also addressed the hot topic that over $250 billion of home loans on ultra-cheap fixed rates are expiring in the next 18 months. These customers will have to pay much higher rates. What does this mean and what should investors be considering when making investment decisions?

 


 

Opportunity or danger in listed investment companies?

26 JULY 2022

Traditional fixed income (bonds) did not perform its intended defensive function in the last year, falling double digits in value globally. Many investors are now turning to other defensive strategies like private credit for more resilient returns and income.

In his latest bi-weekly interview with Ausbiz, Frank Danieli, Managing Director and Head of Credit Investments and Lending, had a wide-ranging discussion with Andrew Geoghegan addressing this trend and whether the opportunities are better in public or private assets.

What is the best way to access this trend? Is it listed investment companies (LICs) which were a hot commodity several years ago, or is this a value trap for investors?

They also dove into the big Private versus Public debate for investors in managed funds to superannuation: how do investors get certainty about true valuation and performance?

 


 

Hidden risks in corporate debt?

12 JULY 2022

2021 was a blockbuster year for debt markets with a lot of companies loading up on cheap loans. Is the tide turning as rates climb, and could this drive an increase in corporate debt defaults? Are there hidden risks investors aren’t seeing? 

In his latest wide-ranging interview with Ausbiz, Frank Danieli, Managing Director and Head of Credit Investments and Lending, discusses these questions with Nadine Blayney along with recent bond market sell-offs and the opportunities in the often-overlooked Private Credit market.


 

Looking for an opportunity in global fintech rout

28 JUNE 2022

In his latest interview with Ausbiz, Frank Danieli, Managing Director and Head of Lending and Credit, had a wide-ranging discussion with Andrew Geoghegan covering:

Fintech: is this a generational opportunity to buy disruptive companies changing the future of finance, or is there more pain to come? And why, when it comes to investing, we see opportunities in the credit space and owning the underlying loan books versus trying to pick the winners.

Banks and financials: historically, rising interest rates have meant banks could expand their net interest margins by charging customers more. Will that happen this time, or are different factors at play?


 

Growing opportunities for private credit funds

15 JUNE 2022

In the current market characterised by high inflation, rising interest rates and volatile equity and bond markets, many borrowers and investors are turning to private credit.

In his latest interview with AusBiz, Frank Danieli, Managing Director and Head of Lending and Credit, discusses the outlook for non-bank lenders and private credit funds, and explains why there continues to be a tremendous amount of investor capital flowing into this $250 billion variable rate asset class.