Global lending markets are evolving quickly as AI disruption, private credit growth and shifting economic conditions create new risks and opportunities for investors.
In this episode, Michael Murphy, associate portfolio manager on Perpetual's Credit and Fixed Income team, explains why Australian loan markets currently offer attractive spreads, stronger creditor protections and higher-quality opportunities than some offshore markets.
He also discusses how Perpetual assesses AI-related software credits and why diversification is critical in building resilient private credit portfolios.
Here's an excerpt from the video podcast:
"Software loans make up a very big part of the US market. It's about 20 per cent of the private loan market in the US. So, they have significant concentration to that sector.
"In Australia, it's much, much less, and it's also worth noting the structures are generally more conservative here.
"In the US, you see a lot of loans that are to companies that are pre-profitability and sized off a multiple of revenues, whereas in Australia they're generally to companies that are already profitable and able to service their debt off their current cash flows."
Watch the full video interview:
Listen to the audio version:
Hear more from Perpetual's Credit and Fixed Income team
About Michael Murphy and Perpetual’s Credit and Fixed Income team
Michael is a portfolio manager and senior high-yield analyst with Perpetual’s credit and fixed income team.
Michael manages Perpetual Diversified Private Debt Fund.
Perpetual offers a range of cash, credit and fixed-income solutions.
Our credit and fixed income team are specialists in investing in quality debt.
They take a highly active approach to buying and selling credit and fixed income securities and invest extensively across industries, maturities and the capital structure.
Learn more about Perpetual’s Credit and Fixed Income capabilities
Questions? Contact a Perpetual account manager
