Investing in Trade Finance

Investing in Trade Finance

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.
Overview

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

  • Compare and contrast the fund structure and risk participation structure

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Summary
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Expert
Andy Sweeney

Andy Sweeney

Andy began his career at Citigroup Global Markets as a money market trader. He then joined RBC Capital Markets and subsequently Mizuho working in bond syndication. After leaving banking, Andy joined a trade finance team to advise on structuring a bond. Since then, Andy has joined Blackstar, where he advises corporates on structuring trade finance.

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