Live: Private credit fund redemption limits hit Australia

A perceived shift in the Iran war from a military conflict to an economic one has seen the oil price and Treasury yields dive and shares rise. And one of Australia's largest private credit investment managers has limited redemptions on its $2.3 billion secured property loan fund.Follow the day's financial news and insights from our specialist business reporters on our live blog.Disclaimer: this blog is not intended as investment advice.Wed 26 Aug 2026 at 6:43amWed 26 Aug 2026 at 6:43amMarket snapshotSPI 200: +0.3% to 9,142.00 pointsAustralian dollar: +0.2% at 71.6 US centsWall Street: Dow Jones (+0.3%), S&P 500 (+0.3%), Nasdaq Composite (+0.6%)Europe: FTSE (+0.2%), DAX (+0.6%) Asia: Hang Seng (FLAT), Nikkei (+0.5%)Spot gold: +0.2% at $US4,661/ounce Oil (Brent futures): -5.9% to $US86.69/barrel Iron ore: +0.1% to $US95.40/tonne Bitcoin: -0.5% to $US78,594 Prices current around 6:45am AESTUpdates on the major ASX indices:Wed 26 Aug 2026 at 9:01amWed 26 Aug 2026 at 9:01amWoolworths' Big W turnaround succeedsA return to profitability for Big W is a big reason Woolworths' earnings have surged.It's managed to boost its financial year 2026 earnings before interest and tax (EBIT) by $97 million.According to Woolworths' ASX release it's thanks to:New value campaign, "Big Price Drops"Own brand growth of 7.5% in financial year 2026 Completed rollout of Radio Frequency Identification (RFID) technology in ClothingWed 26 Aug 2026 at 8:55amWed 26 Aug 2026 at 8:55amWoolworths profit jumps on Big W winWoolworths has delivered a solid profit result.Profit after tax attributable to equity holders of the parent entity surged 18% to $1.138 billion.CEO Amanda Bardwell said she expects the "challenging economic environment to continue" but she was "confident" that Woolworths can be a "first choice for customers".Group sales increased 3.6% in financial year 2026.Group EBIT before significant items increased by 12.7%.eCommerce sales increased 18%.Importantly, its Big W franchise, the group says, has returned to profitability.Wed 26 Aug 2026 at 8:44amWed 26 Aug 2026 at 8:44amWoolworths profit soars 18%Australia's largest supermarket chain, Woolworths, has seen its profit surge.Woolworths' headline profit rose 18% to $1.138 billion.More to comeWed 26 Aug 2026 at 8:39amWed 26 Aug 2026 at 8:39amWest Texas Intermediate (WTI) crude joins oil routEarlier we reported that the price of Brent crude had fallen as much as 6% overnight.It's now trading down 5.5% at $87.04.This is in large part due to traders viewing the Iran war as shifting to an economic conflict rather than a physical conflict.The price of West Texas Intermediate (WTI) crude has also now opened 1.6% lower at $US81.04 a barrel.Wed 26 Aug 2026 at 8:32amWed 26 Aug 2026 at 8:32amBig inflation data print to comeToday the Bureau of Statistics will release inflation data for July.The June inflation print saw the trimmed mean publish at 3.6%, which was unchanged on the previous result."When we look through some of the bigger price movements, underlying inflation is steady at 3.6% in the 12 months to June 2026," ABS head of price statistics, Rachael McCririck said."This is the same as in the 12 months to May 2026.”If there is an upside surprise to inflation today, or it comes in higher than expected, there will be further pressure on the Reserve Bank to hike interest rates when it next meets in September.The ABS will publish the inflation rate at 11:30am AEST.Wed 26 Aug 2026 at 8:25amWed 26 Aug 2026 at 8:25amChanges to big banks rewards cardsHere's an update on big bank rewards card from interest rate comparison website, Canstar.The ANZ has announced sweeping changes to its rewards credit cards to come into effect from September 28, three days before the RBA’s surcharge ban kicks in.ANZ has announced changes to all of its credit cards, not just its rewards ones, which, depending on the card, include:Hikes to interest ratesCaps on how many points a customer can earnIncreases to cash advance rates and feesAxing of, or reduction of, travel insurance cover (see below for details)The news follows similar announcements from big banks CBA, Westpac and NAB. ANZ has also previously made changes to sign-up bonus points.Big Bank Rewards Cards (Canstar)Wed 26 Aug 2026 at 8:12amWed 26 Aug 2026 at 8:12amAustralian private credit woes deepenWe're waking up to the news that MA Financial group is limiting redemptions for investors.It joins a growing list of private credit firms imposing redemption limits or restrictions on investors including Merricks, Longreach Credit, and Centuria.Yesterday the business team's Lin Lin reported major Sydney residential developer Bathla Group has fallen into administration after months of mounting financial pressure.We'll be looking into which private credit firms have exposure to this collapse throughout the morning.Wed 26 Aug 2026 at 8:00amWed 26 Aug 2026 at 8:00amOil price dives as traders see shift in conflictThe price of global benchmark Brent crude was down as much as 6% earlier today.Traders appear to have shrugged off the latest US sanctions campaign against Iran, viewing economic pressure less risky for oil supplies than a military escalation.The shift from military conflict to economic pressure in the US-Israeli war with Iran has reduced some of the oil market's anxiety, according to Saxo Bank head of commodity strategy Ole Hansen.He added that the US sanctions announcement was not as forceful as some traders had expected.Treasury Secretary Scott Bessent unveiled the measures on Monday, almost six months into the war. He declined to identify countries targeted or say when penalties would take effect, adding he would give countries time to comply.The economic pressure campaign has revived expectations of talks between the US and Iran to resolve their conflict, which began when the US and Israel launched military strikes on Tehran at the end of February.Reporting with ReutersWed 26 Aug 2026 at 7:50amWed 26 Aug 2026 at 7:50amCanada announces retaliatory tariffsOvernight Canada announced retaliatory tariffs against the United States, matching “dollar for dollar” the 50% duties that US President Donald Trump imposed over the weekend.Ottawa’s new tariffs include more than 700 US goods worth about $US20 billion ($27.9 billion).The counter tariffs range from 15% to 50% and target a wide array of Canadian imports from the US, including dairy, seafood, appliances, wood and paper products, and clothes."The recently threatened 50% tariffs on Canadian autos, trucks, and car parts would feed through to consumer prices more readily than before. Automakers and car dealerships have managed to absorb the lion’s share of the tariff costs, but that cushion is wearing thin," Oxford Economics wrote in a note."The timing of the vehicle tariffs suggests that the midterms are a constraint on the Trump administration’s trade policy. But after November, the president may feel unfettered by domestic politics and pursue more trade protectionism, adding upside risk to our forecast for steady disinflation this year."Wed 26 Aug 2026 at 7:40amWed 26 Aug 2026 at 7:40amCPI ahead along with Woolworths resultsHere's your morning note from the economics desk at the National Australia Bank:Oil falls 4% amid hope of US-Iran de-escalation and as Iran, Oman discuss Hormuz pathwayEnergy price drop helps yields lower, led by UK, Europe and softer US economic dataEquities rose, but pared best of gains as softer US data rolled in; USD can’t sustain early gainsAhead today: AUS: Aug CPI, Westpac Leading Index, Construction Work Done, JP: Jul PPI, US: Jul Core PCE, Q2 GDP 2ndrelease, Jul Durable GoodsWed 26 Aug 2026 at 7:30amWed 26 Aug 2026 at 7:30amPrivate credit redemptions hit AustraliaAustralia is now seeing private credit redemption limits.These redemption limits are imposed by large investment firms that become anxious about the amount of money investors begin to redeem from their funds.This morning we're learning that MA Financial has announced a temporary redemption limit of up to 1% of its funds under management per month.MA Financial joins several other private credit firms limiting redemptions.Wall Street is ground zero for the alternative investment market and there are fears this massive, risky US private lending ship is sinking and investors are jumping out.Australia's corporate cop has highlighted unique risks for Australia too."If the Australian property is overvalued, and we see those practices emerging and it happens at scale, you get gaps," ASIC commissioner Simone Constant told The Business earlier this year."And when you get those gaps, you get problems with liquidity, you get lagging in data, you get the risk of default, for example."And of course, investors putting their money into things that don't stack up."MA Financial’s joint chief executive, Chris Wyke, told Nine newspapers the action was "proactive measure in response to the potential for increased redemption activity"."The temporary arrangements reflect the broader market, including uncertainty following proposed tax changes in the federal budget and recent publicity concerning other, unrelated private credit managers," he said.Wed 26 Aug 2026 at 7:16amWed 26 Aug 2026 at 7:16amMA Financial imposes redemption limitsMA Financial has become another Australian private credit investment manager to limit the investment returns investors can receive.Private credit is lending outside the banking sector.It's hit major hurdles in the US as lending to big tech software companies has soured with the boom in AI.Major US private credit firms began imposing redemptions of clients last year as investments on those firms soured.Now Australia is seeing private credit investment redemptions sour.Here is the ASX release from MA Financial-exposed, and ASX-listed, MA Credit Trust.MA Financial limits redemptions (ASX)The private credit firm has limited redemptions on its $2.3 billion secured property loan fund in response to "current market conditions and elevated redemption activity".The redemption limit will be in place until at least October 31 and will be subject to ongoing review.MA Financial said the fund had $95 million of cash, or 4.1% of assets, which is below its 5% target.Wed 26 Aug 2026 at 6:50amWed 26 Aug 2026 at 6:50amTreasury yields fall as oil slumpsMorning folks,David Taylor here to take you through the morning in business and finance.The main macro event overnight was Treasury yields falling for a second straight day.The US 10-Year Treasury bond was down 0.08% or 8 basis points to 4.62%.Yields fell on Monday after the US Treasury Department said it could use its $1 trillion General Account to fund bond repurchases.Yields took another leg down overnight as the price of oil slumped, taking away an inflation pressure point.These moves also saw shares rise. Gold achieved modest gains and risk-on sentiment saw the Australian dollar rally a touch.There's plenty on today, so stay with me.