Private Credit Riskier in Australia on Property Bets, CIOs Warn

Private-credit investments are growing increasingly risky in Australia due to their heavy weighting toward the property sector, some of the nation’s biggest funds say.

The potential for real estate-linked losses is rising as the Reserve Bank of Australia pivots toward raising interest rates next year, according to money manager Colonial First State. One additional cause for concern is that individual investors are funneling more funds into private credit without always realizing the possible dangers, AMP Investments says.