The Hidden Risk Facing Australia’s Credit Funds: Property Values Haven’t Fallen, but Transactions Have

Australia’s private credit market is entering what may prove to be its first genuine stress cycle. While ASIC’s increased focus on private credit has attracted considerable attention, the more immediate challenge for many credit fund managers and trustees may be commercial rather than regulatory. ASIC has now identified poor private credit practices as an enforcement priority and signalled increased scrutiny of the sector. The more pressing issue is that Australian property markets have become significantly harder to transact.