Investment Leaders October 2024

With economic growth slowing, interest rates remaining high, and asset returns becoming increasingly unpredictable, private credit is capturing significant investor interest. As traditional assets like stocks, bonds, and real estate offer less certainty, investors are turning to private credit for its potential to provide steady income and enhanced diversification in today’s challenging market landscape.

The Australian Prudential Regulation Authority's (APRA) proposed changes to bank capital regulations could reshape the domestic hybrid securities market. This article examines AT1 capital securities, or “hybrids,” APRA’s proposal, and potential alternatives for investors seeking defensive income.