Andrew Lockhart Managing Partner at Metrics Credit Partners
Qantas – 30 September 2019
Andrew has more than 30 years’ banking, funds management and financial markets experience and previously specialised in leverage and acquisition finance as well as corporate and institutional lending. His areas of expertise include corporate debt origination, portfolio and risk management and corporate restructuring. Andrew previously specialised in leverage and acquisition finance as well as corporate and institutional lending.
- Fixed income market is changing as exemplified by negative bond yields
- Investors need to change with it. Investors used to rely on fixed income for income, now cash, term deposits etc are at record lows
- Investors should move up the risk curve ever so slightly to corporate loans. Corporate bonds/ loans offers these – with returns between 4 – 10%, depending on risk. Rather than one loan, now funds offering many – more diversified
- That risk is still well below equities (bonds / loans rank first)
- Non-bank corporate loans are also an alternative source of funds for corporates, rather than the big four banks
- Transforming corporate lending – Metrics is now the largest non-bank corporate lender in the country.