The chiefs of Australia’s largest superannuation funds say rising interest rates are allowing them to lock in higher returns while taking less risk than they did during the era of cheap money.said he was allocating capital to private credit because the returns were compelling and likely to exist for years to come, as banks pulled back on lending.Aaron Francis
“We’ve done some transactions where we’ve been able to get better fees, better valuations, better governance rights,” he said.“We definitely are seeing opportunities given the actual yield and the interest rates are higher. So we’re not seeing the need to take excessive risk because you’re now being rewarded,”
“With higher inflation, you’ve got to be quite savvy as to what do you do to protect members, particularly those nearing or through retirement,” she said. “Being a provider of capital, I’m somewhat agnostic ,” he said. “All I want is a good execution on the strategic plans, but I do think there’s something to be said about the decay of public markets.”