Jonathan Street

Ongoing volatility is linked to uncertainty over interest rates, which appears likely to be nearing an end, the non-bank property lending specialist said. Buoyed by a recent $500 million CMBS deal that was more than twice oversubscribed, it maintains a “cautiously positive” outlook for credit performance.

Despite facing rising interest rates, a higher cost of capital and concerns about their borrowing base, non-bank lenders have made their place in the Australian economy in moments like this, when funding is needed and otherwise hard to get, says Thinktank’s Jonathan Street.