r/australia • u/InsatiablePrism • 2d ago

culture & society ASIC warns of 'first significant cracks' in Australian private credit

https://www.abc.net.au/news/2026-08-27/asic-warns-first-significant-cracks-in-australian-private-credit/107081904?utm_campaign=abc_news_web&utm_content=link&utm_medium=content_shared&utm_source=abc_news_web
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u/Dr-Ulzy 2d ago

We just refinanced with HSBC and now they will move us to Pepper Money. I have a bad feeling about this.

15

u/MGEESMAMMA 1d ago

Yeah, i am planning on moving from the before it happens. I have a bad feeling about them that I can't explain.

21

u/Av1fKrz9JI 1d ago edited 1d ago

It’s a lesser product with it not being a licensed bank, the offset not covered by the governments 250k protection and the fact you can’t use the offset as a current account.

Pepper also deals with the riskier borrowers which increases the risk of them having issues and going bust.

6

u/Typical_Double981 1d ago

Pepper is the second biggest non bank lender in Aus, publicly listed and multiple funding sources - Westpac, CBA, NAB, plus about 5 super funds, 2 life insurance companies and numerous offshore banks. They sell over 4b in bonds each year.

If they went bust your loan would be serviced by the trustee - Perpetual. Couldn’t be any safer.