The Australian private debt continues to offer attractive risk-adjusted returns and remains an asset class offering one of the most attractive risk-adjusted return profiles, according to Evergreen Ratings.
Evergreens chief executive, Angela Ashton, said with Australia Prudential Regulation Authority (APRA)-regulated authorised deposit-taking institutions (ADIs) facing more onerous macro-prudential guidelines, the domestic market saw more borrowers seeking funds outside traditional banking sources.
The market dynamics are supportive of attractive risk-adjusted loan pricing which presents an opportunity for a capital provider to earn excess returns, Ashton said.
Interest rates are at historical lows and stock dividends f…
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