Overview

  • Market neutral strategy profiting from fluctuation in commodity prices and offering low volatility across market cycles
  • Secured asset class with senior recourse to borrowers’ balance sheets
  • Cash income-generating in nature based on stable demographic demand globally
  • Positive correlation to interest rates, generally achieving higher profits in an increasing interest rate environment
  • Short duration transaction typically lasting from 1-9 months
  • US$1.6 trillion of unmet global demand for trade finance
  • US$90 billion of unmet trade finance demand annually in Africa
  • Banks’ trade finance portfolios have shrunk since the global financial crisis owing to higher costs and associated regulatory restrictions