Australia's prudential regulator will monitor lending practices across the country's banks to ensure slowing credit growth does not lead to riskier loans. The move comes as HSBC finalizes a deal to offload its $30b-plus Australian loan book to US credit giant Blackstone, marking the firm's entry into Australia's home lending market.

Private credit markets face turbulence. Centuria's Bass private credit fund confronts a "wave of redemptions" after exposure to embattled developer Bathla, whose owners hold $3b in debt yet plan a luxury Sydney compound. An influential ratings agency cut its rating on the fund, citing rule changes to accommodate the troubled borrower. Morningstar researchers warn the decision could "spill over" to other funds.

Despite sector concerns, Australian Super plans a fivefold lift in private credit assets, targeting $20 billion within four years, calling the investment suited to older members drawing incomes. Meanwhile, Ares tipped $400m-plus into Allegro's New Zealand fuel bet, and super funds pile into risky corporate debt to meet ageing member needs, though a leading banker warns of timing risks.