This week we welcome back Mark Bayley, Portfolio Manager at Kapstream Capital to the Fixated podcast to discuss the post-US Election market reactions and explore the fascinating Private Credit asset class.

We look at how Private Credit fits into an investor’s portfolio, the importance of understanding fees, and what investors should be looking for. Mark also shares his insight into the Kapstream Private Investment Fund which offers investors access to higher yielding investments in securitised warehouse financing.

Private credit has undergone a real renaissance in recent times both in Australia and around the world. CFMG Capital’s Andrew Thomson joins us again to lift the lid on what is driving so much investor interest in this asset class. One of the big concerns of investors about private credit has been the interconnected relationships between manager and borrower. Andrew provides us with valuable insight into CFMG’s view toward this relationship, and how they manage difficult decisions when balancing the interests of the developer and that of the investor.

We discuss the three CFMG funds, how they assess their projects, the difference between pooled and contributory schemes, and the impact lower interest rates may have on their funds and the land market in general.

ASX listed hybrids have been a consistent source of income for decades. Is APRA’s proposal to phase them out likely to go ahead? Where else can investors get similarly high yields? Brad Newcombe from Fixed Income Solutions has followed the hybrid market for more than 25 years and gives us his views.