SQM issues warning on private credit after uptick in bad loans

SQM issues warning on private credit after uptick in bad loans

One of the largest ratings agencies said it was concerned by “questionable” practices and a lack of transparency in the non-bank lending sector.

In order to reduce the risk of debt burden on citizens due to the demand and supply of consumer loans from non-bank financial institutions, the Financial Regulatory Commission has set a debt-to-income ratio of not more than 70 percent for online loan products from 2023, and since November last year, the debt-to-income ratio for all types of consumer loans and the valuation ratio for consumer loans secured by and purchased with a passenger car mo…

Hospitals face another hazard from cyberattacks: credit downgrades

Fitch Ratings has downgraded two hospitals that suffered cyberattacks. Other hospitals could face downgrades if they have lasting damage from attacks.

Due to the increase in bad loans and low transparency in private credit, SQM Research, one of Australia's largest loan rating agencies, issued a warning and put private credit on the "watch list".

ABC Statewide drive: why is private credit gaining traction?

Yesterday I joined Jess McGuire on ABC Statewide Drive to discuss why private credit is gaining traction as a popular investment option. Following the Global Financial Crisis (GFC) banks faced increased regulation, making particular loan types less profitable for them. As a result, banks stopped offering these types of loans, creating a gap in the market. The private credit sector has stepped in to fill this void. The private credit sector is de…

The 14 issues prompting SQM Research’s ‘Watch’ on private credit - Financial Newswire

Having placed the private credit sector on ‘watch’, SQM Research has listed the issues which underpinned its controversial decision. And one of those issues has been listed as “dubious marketing strategies involving advisers”. As well, SQM Research managing director, Louis Christopher noted that over the past 12 months the firm had screened out approximately 20 fund offerings with the private credit sector, the majority of which were in wholesal…