HCP Insights
Anticipating Rate Cuts: Implications for Asset Pricing and Risk
After a disappointing year (for many) on the Australian interest rate front in 2024, expectations are heightened for multiple cuts to domestic interest rates in 2025, particularly given recent data. Such cuts will, in turn, have ramifications on asset values, pricing, and risk – but to what end?
January, 2025
Thinking About Valuations
Valuations are often treated as definitive indicators of an asset’s worth. In reality, they are merely estimates – snapshots in time that attempt to capture a market-clearing price under specific conditions. Their accuracy is subject to numerous variables, particularly ……….
February, 2025
Regulatory Evolution in Private Credit
Private market investing is not a new phenomenon. Most famously, David Swenson took the reins of the Yale endowment in 1985 and steered 30 years of strong outperformance by, among other tactics, reaping the benefit of the illiquidity premium by reallocating away from common public market equities and bonds to ….
March, 2025
HCP on Definitely Uncertain Podcast
Jonathan Moss and Cyril Pham from Harbour Credit Partners were invited by Goldrock Capital to join their podcast, Definitely Uncertain, for a deep dive into the evolving landscape of private credit and real estate lending in Australia. The pair shared insights into ……….
Listen in for valuable perspectives on private lending and real estate!
April, 2025
Lord, Grant Me Prudence
Thoughts on why we, at Harbour Credit Partners, are keeping our deal parameters narrow (for now)
Over the past few months, we have seen a familiar story unfold across credit markets: risk premiums are compressed, and the dispersion of returns across strategies is narrowing. In plain English, lenders are being paid less to take on more risk, and everyone’s returns are starting to look uncomfortably similar – regardless of strategy or asset type.
May, 2025
A (Partial) Year In Review
The end of the financial year looms in Australia, and the first half of the 2025 calendar year has been nothing short of dramatic: Liberation Day, two interest rate cuts, ongoing geopolitical unrest, and significant volatility and dispersion across listed markets.
Amidst the uncertainty, two key themes have emerged across our observed markets:
June, 2025
A Rose By Any Other Name …
In the world of private CRE debt, the moniker "First Registered Mortgage" gets bandied about a lot - but are all loans secured by first registered mortgages built the same?
While Shakespeare’s Romeo & Juliet, from where we lifted the title of this Monthly Insights piece, features an ongoing feud between two warring Houses (that of the Capulets and the Montagues, respectively), any other connection to modern day real estate from this work is a stretch.
July, 2025
LVRs in a Dangerous Time …
A follow up commentary on how another simplified and generalised concept deserves much more consideration.
Don’t the hours grow shorter as the days go by?You never get to stop and open your eyes
One day you’re waiting for the sky to fall
The next you’re dazzled by the beauty of it all
When you’re lovers in a dangerous time …
What do Bruce Cockburn’s lyrics about young love blooming against a backdrop of the Cold War have to do with one of the key risk metrics associated with the world of private credit?
August, 2025