Despite weak consumer confidence and geopolitical uncertainty, Australian borrowers with strong balance sheets are re‑gearing to capture business opportunities. Msquared Capital’s General Manager Loan Origination & Credit Michael Volkiene tells ausbiz that rising interest rates have not subdued the impact investor demand for yield has on lenders, where the contest for quality borrowers is intensifying. He expects continued strong growth in activity from entrepreneurial Australian SMEs for the remainder of the year.
Key points:
- Rising competition and a flight to quality in Australian private credit
- Rate hikes seen as expanding the opportunity set for non‑bank and private lenders
- Market viewed as maturing towards higher private credit penetration over coming years
- Private credit framed as a portfolio component where risks and liquidity are well understood
Disclaimer:
Msquared Capital Pty Ltd ACN 622 507 297 AFSL 520293. The information provided is general in nature and reflects the views of the speaker at the time of recording. Forward-looking information is inherently uncertain, and actual results may differ materially from projections. The information has been prepared without taking into account your objectives, financial situation or needs, and does not constitute personal financial product advice, investment advice or a recommendation. Before making any investment decision, you should consider whether the information is appropriate to your circumstances and seek independent financial advice.
