Challenger Investment Management

Australia’s private credit market has reached $188 billion in assets, marking significant maturity and growth. Pete Robinson tells InvestorDaily that as private credit comes out of the shadows, increased transparency and more market participants are driving positive change and investor confidence. Read the full article: https://lnkd.in/g6nXSc3W

In the latest “What We’re Watching", Pete Robinson explores the market impact of Donald Trump’s return to the presidency. While equities rallied leading up to and following the election, the US balance sheet presents growing concerns, with debt to GDP at 120% and a rising deficit. The shift from quantitative easing to tightening is also driving higher yields. While corporate credit has been resilient, commercial real estate remains vulnerable, with serviceability ratios struggling. The "higher for longer" rate environment is expected to persist under a Trump administration. Read the full article: https://lnkd.in/gm9H5P5H

At a recent roundtable with the Virtual Panel, Challenger Investment Management’s Christopher Whitcombe and Maddi Rowlatt led an insightful discussion on the opportunities within ABS. Click the link below to watch the highlights reel: https://lnkd.in/eWAyrNur Topics explored include: • Opportunities in structured credit across developed markets. • The resilience of structured credit in times of market volatility. • Focus on structural protections to unlock value in ABS.

Join Challenger Investment Management Portfolio Managers Christopher Whitcombe and Maddi Rowlatt at the upcoming cio investment club breakfast this November, where they will discuss the expanding opportunities in Structured Credit. If you’re in London and want to learn more, click below to reserve your spot! https://lnkd.in/e-EVnENG

Transactions pricing last week have taken issuance in UK & European ABS/RMBS to a post GFC annual record, surpassing €77bn, versus the €76.5bn full-year issuance of 2018. Read our recent thoughts on issuance so far in 2024 and our outlook for the remainder of the year. https://lnkd.in/gyDUSQCf

In an interview with Selvaggia Cataldi at Structured Credit Investor, Maddi Rowlatt shares her mid-year review on ABS and outlook for the rest of 2024. “The market has benefited from a relatively favourable macroeconomic backdrop. Volatility has been limited since the LDI crisis in 2022, and this has given both investors and issuers a lot of confidence.” Rowlatt is aware of potential risks on the horizon: “There are some macro and geopolitical themes we need to be cautious of, but the confidence in the asset class and the need for funding from issuers remain high.” Looking ahead, she believes the diversity of opportunities across markets is key: “The global nature of our strategy, spanning the UK, Europe, US, and Australia, gives us the flexibility to find value wherever it presents itself.” Read the article here: https://ow.ly/fQ2z50TzNeJ

In this article, Andy Armstrong, Senior Portfolio Manager, speaks with KangaNews about Challenger Investment Management’s renewed focus on the Australian mortgage market and evolving investment strategy. CIM are leveraging our servicing expertise to expand into the whole-loan asset class, acquiring mortgage portfolios directly from nonbank lenders. As the market evolves, whole-loan financing presents a significant opportunity for growth in Australia. Read the full article: https://lnkd.in/ggcE_zq6

We are proud to announce our nomination in the Australian Fixed Interest category for the upcoming 2024 Zenith Investment Partners Fund Awards!   Full details on Zenith Fund Awards at- https://lnkd.in/gUWS7aSN     Zenith Investment Partners Pty Ltd ABN 27 103 132 672 AFSL 226872 Fund Awards issued (18 October 2024) are solely statements of opinion and not a recommendation in relation to making any investment decisions. Fund Awards are current for 12 months and subject to change at any time. Fund Awards for previous years are for historical purposes only. Full details on Zenith Fund Awards at https://lnkd.in/gk9YbR2h 

The recent media attention garnered by AustralianSuper’s $1.1 billion hit in a private equity deal shouldn’t raise alarms, rather it’s an example of the risks inherent in any equity investment, regardless of whether it is unlisted or listed. Pete Robinson spoke with InvestorDaily on the importance of understanding that losses are inevitable when taking risks in investments. He emphasised the importance of good governance and transparency to ensure that trust within private markets is maintained even when losses occur. Robinson remained circumspect, stating, 'We cannot make the call that private assets are inherently more risky than public assets based on a single trade." Read the full article: https://lnkd.in/gYtXjeQF

Pete Robinson recently joined ION Analytics’ Giovanni Amodeo for his fireside chat series to discuss the current state of corporate governance in private credit markets, highlighting the opportunities and challenges that lie ahead for the industry. Watch the full conversation here: https://lnkd.in/gDq4cprg