Aura Group
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Banks have left a $240 billion gap, now savvy investors are seeing opportunity
Brett Craig
June 15, 2023
Private credit used to be the domain of high net worth investors but that is all changing as nimble operators fill a gap in the market.There’s a $240 billion funding gap facing the small and medium enterprises (SMEs) that employ 70 per cent of the population. SMEs play an essential role in the economy. However, changes to regulatory requirements are making it harder for them to access funding to help them innovate and grow. continue…
by Brett Craig Posted in Aura Group, Editor's Pick, Video Insights.
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Aura Private Credit: Letter to investors 02 June 2023
Brett Craig
June 5, 2023
The monthly Consumer Price Index indicator rose by 6.8 per cent in the year to April 2023. This month’s result is higher than the 6.3 per cent rise reported in the prior month. The rise can be largely attributed to the rise in housing and petrol seen in April along with what are considered to be volatile items – fuel, fruit, vegetables and holiday travel. continue…
by Brett Craig Posted in Aura Group.
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Aura Private Credit: Letter to investors 26 May 2023
Brett Craig
May 29, 2023
Over the past decade, regulatory capital treatment has seen Authorised Deposit-taking Institutions or major Banks (ADIs) pull back from originating specialised asset-based loans, instead gaining exposure via asset-backed facilities secured by asset-based loans originated by non-bank lenders. Due to ADIs’ preference to invest only in large, mature facilities with a AAA rating, there is an inherent funding gap. This week we explore how specialised investment managers, such as the Aura Private Credit team, provide curated access for investors to this asset class via securitisation or asset-backed facilities. continue…
by Brett Craig Posted in Aura Group.
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Aura Private Credit: Letter to investors 19 May 2023
Brett Craig
May 23, 2023
The Australian Bureau of Statistics (ABS) has recently reported on various leading indicators that contribute to the Reserve Bank of Australia’s (RBA) monthly monetary policy decisions. The wage price index released last week reported the largest annual increase in wage growth in more than 10 years. The labour market also remains strong. Household spending growth has finally begun to show signs of slowing. continue…
by Brett Craig Posted in Aura Group.
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Aura Private Credit: Letter to investors 05 May 2023
Brett Craig
May 5, 2023
Tuesday 02 May saw the Reserve Bank of Australia (RBA) announce a 25-basis point increase to the Cash Rate, bringing the rate to 3.85 per cent. This caught the market and mortgage borrowers off guard, which had priced in no further increase. However, it remained consistent with commentary released by the RBA Governor, Phillip Lowe, in April. continue…
by Brett Craig Posted in Aura Group.
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Aura Private Credit: Letter to investors 28 April 2023
Brett Craig
April 28, 2023
The Australian Bureau of Statistics (ABS) released the Quarterly Consumer Price Index this week, which confirmed a second consecutive quarterly slow down. The Reserve Bank of Australia (RBA) will be closely assessing this data in preparation for next weeks’ monetary policy decision meeting. continue…
by Brett Craig Posted in Aura Group.
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Aura Private Credit: Letter to investors 14 April 2023
Brett Craig
April 14, 2023
Often, Private Credit investors ask, “are businesses debt serviceability prospects hampered by inflation, relating to good and service production inputs and increasing costs of debt capital?” continue…
by Brett Craig Posted in Aura Group.
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The Aura High Yield SME Fund receives a “Very Strong” rating from Foresight Analytics
David Buckland
April 11, 2023
The Aura High Yield SME Fund recently received a “Very Strong” Investment Rating from Foresight Analytics, indicating a “very strong conviction” Aura “can deliver a risk-adjusted return in line with the investment objectives of the Fund.” And given its “Complex” designation, I thought it valuable to reiterate some of the more insightful points in the report. continue…
by David Buckland Posted in Aura Group.
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Aura Private Credit: Letter to investors 31 March 2023
Brett Craig
March 31, 2023
This week saw the release of two key economic indicators; the monthly indicator of the Consumer Price Index and Job Vacancies data. Both are displaying a slight softening in the economy, perhaps an early indication of the contractionary monetary policies explored last week, increases to the cash rate and quantitative tightening, beginning to take their intended effect. continue…
by Brett Craig Posted in Aura Group.
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Aura Private Credit: Letter to investors 10 March 2023
Brett Craig
March 14, 2023
The RBA is “resolute in its determination to return inflation to target and will do what is necessary to achieve that.” Last week’s 25 basis point rise to the official cash rate, now sitting at 3.6 per cent, forms part of the RBA’s approach to reign inflation back into the 2-3 per cent target range, implying that further pain is ahead. continue…
by Brett Craig Posted in Aura Group.
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