Investing in Trade Finance
Andy Sweeney
20 years: Trade finance & banking
Many funds struggle to access the Trade Finance market, typically because of its complexity. In this video Andy outlines the structures available for investors to gain access the market.
Many funds struggle to access the Trade Finance market, typically because of its complexity. In this video Andy outlines the structures available for investors to gain access the market.
Investing in Trade Finance
5 mins 6 secs
Trade finance remains one of the most elusive asset classes for investors. On the surface, for an investor, the characteristics are perfect: trade finance pays a higher yield than conventional fixed income, it has a shorter duration and it is secured. However, there are risks associated with the sector, mainly fraud and documentary failure. Addressing these risks has limited the ways investors can access the market to purchasing a fund and partaking in a Risk Participation Agreement.
Key learning objectives:
Explain the key risks associated with the trade finance sector
Understand the ways of accessing trade finance and each structure’s limitations
Describe the fund structure and risk participation structure
Andy Sweeney
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