HSBC leads banks in selling packaged trade finance

By Owen Sanderson
23 May 2019

HSBC has started a programme to sell some of its trade finance exposures in packaged, investor-friendly format, threatening a lucrative niche until now occupied by firms such as Greensill Capital. The bank, the largest trade finance lender in the world, has worked with AllianzGI to sell the short dated bond-like assets.

Fixed income investors, always under pressure to boost risk-adjusted returns, have sought out alternative assets, including trade finance exposures, in recent years, picking up attractive illiquidity premiums for investing in such assets.

The most controversial example is GAM’s now-liquidated Total Return Fund, which had a series of SPV ...

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