Jul 12, 2026 – 8.00pmThe Reserve Bank of Australia is bracing for mounting defaults across the ballooning private credit sector and is concerned that any financial shock from the industry will be exacerbated by highly concentrated loan books in the property sector among fund managers.Internal documents from the central bank released to The Australian Financial Review under Freedom of Information also reveal that the RBA is worried about the fallout from a rupture in overseas private credit markets, such as the collapse of a major fund.Subscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber? Fetching latest articles
RBA bracing for private credit default rates to increase
Internal documents reveal the RBA’s concern of the potential for a downturn in private credit funds to spread quickly through the local financial market.
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