When considering investments, trade finance assets may be considered as a worthy alternative investment from the usual bonds, equities and syndicated loans available in the market, as there are some interesting returns to be considered. This measures up well in comparison to those available in the traditional markets and where transactions are well structured through collateralisation giving returns of up to 12%p.a.
So let’s maybe start by considering the nature of these assets and who is currently involved in their finance and who may be interested to do so currently.
Despite recent Turkey fears, the gold price this week fell to a 20-month low (since January 2017) in the latest sign that investors have fallen out of love with the safe-haven asset. Being US Dollar denominated and standing below $1,176 an ounce, combined with current monetary policy and further US Dollar strength, Gold price is definitely looking to slide even further. As interest rates rise or are expected to rise in the near future, non-interest-bearing asset such as gold price can suffer.
Moreover, according to the recent report by World Gold Council, the demand for Gold is also down, with…