The demand for trade finance continues to increase, despite a global shortage of financing to facilitate the deals. This shortfall has created an array of potentially high-yielding investment opportunities for providers with the right resources, analytical teams and banking connections. Chris McGinley, Head of Trade Finance, outlines how Federated Hermes’ approach to trade finance differs from peers, how the team navigate risks, and the wider benefits of the strategy.
Providing stable and predictable returns coupled with short duration, trade finance is a defensive fixed income strategy that can produce an attractive opportunity for investors, say David Newman and Martin Opfermann.
Harnessing the complexity premium of trade finance assets