Msquared Capital Managing Director, Paul Miron, speaks with David Koch on ausbiz to discuss the latest developments in private credit, the economy, and how Msquared is positioning our funds accordingly.
Author: Vikas Arkalgud
The End of Free Money
The most recent inflation figures, both here and in the US, reinforce that inflation is here to stay, with US inflation having risen to 3.7% in August 2023 (up from 3.2% in July 2023), and Australian inflation remaining elevated at a rate of 5.2% in June 2023. At the same time, expectations of higher oil prices have been adding to inflationary pressures and dashed hopes that interest rates will be cut in early 2024. A structurally elevated cash rate is seen as a reality and has opened the door to further interest rate hikes.
Talking Private with Msquared Capital – EP. 08 – Case Study: 2nd Mortgage Sydney Metro
Head of Distribution, Craig Stuart, and BDM, Joshua Cottam, sit down to discuss a specific $3.5m 2nd mortgage transaction financed by Msquared, with a 70% LVR, secured by a property located within the Sydney Metro area.
Are We Ready to Debate the Housing Crisis and Face Reality?
As the outgoing Reserve Bank Governor, Philip Lowe, faced the House of Representatives Standing Committee on Economics last Friday, a sigh of relief was shared amongst mortgage holders that “the worst is over” regarding the fight against inflation. It only took 12 interest rate hikes to bring inflation at bay in the quickest contraction in monetary policy in Australia’s modern history. As many Australian mortgage holders are now tipping over the wretched mortgage cliff, we see signs within leading economic indicators such as retail sales, consumer business confidence and mortgage arrears, that there is much more pain to come.
Talking Private with Msquared Capital – EP. 07 – Information Required to Provide Terms
Head of Distribution, Craig Stuart, and BDM, Joshua Cottam, sit down to discuss the information Msquared requires to provide terms with speed and confidence for a given lending scenario.
Talking Private with Msquared Capital – EP. 06 – Hidden Costs in Private Lending
Head of Distribution, Craig Stuart, and BDM, Joshua Cottam, sit down to discuss the hidden costs associated with private lending products, and how these costs may not be factored in when comparing lending options.
Is Private Credit the New Megatrend in Australia? (Part 2)
At the beginning of 2022, I posed the following question to an audience of sophisticated self-directed investors:
Is Private Credit the new megatrend in Australia?
It is important to remember these were carefree times when the official cash rate was at a historic low of 0.10%, and terms such as ‘cost of living pressure’, ‘mortgage stress’, ‘inflation’ and ‘recession’ were not part of our vernacular.
I learnt a few lessons that day:
Talking Private with Msquared Capital – EP. 05 – New Product Offering
Head of Distribution, Craig Stuart, and BDM, Joshua Cottam, sit down to discuss Msquared’s new funding capabilities, which includes a luxury residential facility, a 3-year industrial product, and the ability to lend against land subdivision residual stock, all with loan sizes up to $50m.
Talking Private with Msquared Capital – EP. 04 – Opportunity Cost
Head of Distribution, Craig Stuart, and BDM, Joshua Cottam, sit down to discuss why private lenders charge higher rates and the opportunity cost associated with delaying borrowing the capital you need.
Talking Private with Msquared Capital – EP. 03 – Benefits of Using a Private Lender
Head of Distribution, Craig Stuart, and BDM, Joshua Cottam, sit down to discuss Msquared’s robust credit assessment process, as well as the unique benefits we, as a private lender, offer to Borrowers and Brokers.