Australia’s corporate watchdog is stepping up its scrutiny of private credit, warning that mounting pressure on property borrowers and refinancing markets is testing the reliability of fund valuations.
The Australian Securities and Investments Commission has issued five new letters putting banks, superannuation funds and insurers on notice as it examines risks in the sector.
The regulator’s concerns centre on conditions facing property borrowers and the challenges of refinancing, which could affect how reliably private-credit funds are valued.
The action signals increased attention from ASIC as pressure builds across the private-credit market and raises questions about the accuracy of valuations used by funds exposed to the sector.
