ALTERNATIVE FINANCING OF COMMODITIES
Who are the new players in the industry?
Since 2008 and the financial crisis, new regulations have modified the trade finance world. Banks are focusing their credit business on big trading firms and have set aside smaller players such as niche traders. These last ones must find new solutions to continue financing their business.
Why did the market changed for them?
What are the alternatives to banks for these small niche traders?
The conference aims to detail the attitude change from the banking sector, its impact on the business and the solutions found through the new form of credit: the Shadow Banking.
Since the increasing withdrawal of the banks from the transactional trade finance, some alternatives started to emerge with some funds. Basically, these funds are benefiting from this new business opportunity by targeting the small/middle niche trading market in which the banks do not want to be involved anymore. We have classified three types of funds:
- Transactional credit funds, working like a trade finance bank by granting credit line to their customers under several conditions
- Margin loans funds, covering trader’s margin required by the bank
- Structured finance funds, financing long-term transactions, participating in syndicated loans and purchasing receivables of trading firms
The trade finance world is changing and a lot of opportunities are appearing.
What are the existing opportunities?
How can new opportunities be developed?
Click here to see the flyer: The Conference Flyer
Download the programme: The Conference Programme
Milan THOMAS and Benoit SAUTHIER, graduated students of the Master of Arts in International Trading, Commodity Finance and Shipping of the University of Geneva made a thesis on this particular subject. CTA Geneva is willing to share the knowledge and promote talented students by involving them in such thematic conferences.