It’s the private credit liquidity trap that poses real investor risk
It’s an interesting time for Brookfield-owned lender and real estate private credit firm La Trobe Financial to kick off a sale process for the business.
There is a potential liquidity trap lurking in the private credit sector for retail and sophisticated investors that can’t be ignored.
Flare-ups in the risk profile of the private credit industry – through troublesome loans and information asymmetry – and a still-fragile macroeconomic climate make this clear.
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Joyce Moullakis writes on banking and finance, specialising in investment banking, private equity, and financial services. Connect with Joyce on Twitter. Email Joyce at joyce.moullakis@nine.com.au