Fixed Income

2024 was yet another positive year for the European & Australian Asset Backed Securities (ABS) markets with record issuance and continued robust performance and resilience. We review the year that was here, along with our key areas of focus for 2025.

UK auto lenders are currently grappling with significant issues due to recent rulings in court cases involving customers complaints regarding the lack of adequate information about commission fees when taking out a financing arrangement.  

In the December quarterly report, we highlight the decline in U.S. private market credit spreads during 2024, reflecting the resilience of credit markets to rising interest rates despite persistently high inflation. However, the report also notes elevated U.S. speculative-grade default rates and record corporate insolvencies in Australia, underscoring the ongoing challenges posed by higher borrowing costs.

A CLO is a type of structured finance product which is backed by a diversified pool of corporate loans.

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.

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.

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.

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.

Pete Robinson spoke with Investor Daily on the importance of understanding that losses are inevitable when taking risks in investments.

This month we compare Q2 banking results in the United States with the national champion CBA.

In this video, Pete Robinson discussed the current state of corporate governance in private credit markets, highlighting the opportunities and challenges that lie ahead.

Private credit is attracting a lot of attention. A combination of higher base rates, a credit margin and illiquidity premium are appealing to investors looking for income.