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Structured Trade Finance Funds: Offering Exposure to an Alternative Asset Class
Investors are always seeking new opportunities to diversify their portfolios and increase returns. One asset class that has gained attention in recent years is structured trade finance. Structured trade finance funds offer investors exposure to the trade finance market, providing a unique and alternative investment opportunity.
What is Structured Trade Finance?
Structured trade finance is a type of financing that helps businesses secure funding for international trade transactions. It involves the use of financial instruments, such as letters of credit and bank guarantees, to mitigate the risks associated with international trade. Structured trade finance is used by businesses of all sizes, from small and medium-sized enterprises (SMEs) to large multinational corporations.
How Do Structured Trade Finance Funds Work?
Structured trade finance funds provide exposure to the trade finance market by investing in a portfolio of trade finance assets, such as letters of credit and bank guarantees. These assets are typically issued by banks and are backed by the creditworthiness of the borrower. The funds are managed by investment managers who have expertise in the trade finance market and are…
