Alan Greenstein, Zagga CEO & Co-Founder, joined Ausbiz to discuss how declining interest rates are shaping private markets and what this means for both investors and borrowers.
Source: ausbiz
Date: 24 February 2025
The rate cut effect on private markets
In this interview with Nadine Blayney, Head of Content & Co-Founder at Ausbiz, Alan highlights that while lower interest rates restore positive sentiment across financial markets, their impact varies across sectors. In commercial private credit, the dynamic between investors and borrowers remains crucial—requiring a careful balance between yield expectations and capital accessibility.
For investors, private credit continues to deliver stable income, even in a softening rate environment. Meanwhile, borrowers stand to benefit from improved funding conditions, as non-bank financing remains a compelling option—offering accessibility and speed, even at slightly higher costs than traditional banks.
Opportunities in commercial real estate
Alan also notes that Australia’s commercial property sector could see renewed activity, as lower rates help stabilise cap rates and encourage transaction flow. However, while the recent rate cut is a step in the right direction, he urges caution, emphasising that further reductions may be gradual. Despite this, the outlook remains optimistic for private market participants.
Watch the full discussion below to learn more.
