21 Mar

TXF & EFA Group Market Report: Investing in Trade Finance Assets

EFA Group is pleased to release a market report produced in association with TXF on investing in trade finance assets. Trade finance as an asset class is set for growth in the near term, according to 78% of respondents in a survey of investment professionals. In the longer term (more than five years), respondents were even more bullish, with 93% expecting medium to high growth in trade finance assets.

This optimism is reflective of a movement that has gathered pace as both users and providers of liquidity have found themselves in the midst of a perfect storm. On the one hand, compliance and regulatory requirements have hamstrung banks’ ability to finance a growing global trade market, stretching the trade finance gap to $1.5 trillion.

On the other, the tightening of spreads in traditional loan markets combined with almost a decade of low interest rates has led to a general compression of yields that has increased the attraction of trade finance assets to institutional investors.

Click here to read the full report.

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