Key take-aways from TFG Geneva’s Incentivizing institutional investment in the commodity trade finance market’ panel
– ๐ ๐๐ฟ๐ผ๐ฎ๐ฑ๐ฒ๐ป๐ถ๐ป๐ด ๐๐ฎ๐ป๐ฑ๐๐ฎ๐ด๐ผ๐ป – Amongst shifting asset-class dynamics, the context has never been more favorable for the private credit – and commodity trade financing – opportunity to go beyond usual suspects Instit’l investors [endowment/pension funds] and actively engage with SFOs/SPICs and EAMs.
– ๐ฆ๐๐ข๐/๐ฆ๐ฃ๐๐๐ ๐ต๐ฎ๐๐ฒ ๐ฏ๐ฒ๐ฐ๐ผ๐บ๐ฒ ๐ธ๐ฒ๐ ๐ฝ๐น๐ฎ๐๐ฒ๐ฟ๐ ๐ถ๐ป ๐๐ต๐ฒ ๐ฃ๐ฟ๐ถ๐๐ฎ๐๐ฒ ๐ฐ๐ฟ๐ฒ๐ฑ๐ถ๐ ๐ณ๐ถ๐ป๐ฎ๐ป๐ฐ๐ถ๐ป๐ด, a growing trend with positive momentum. One third of SFOs/SPICs scheduled to allocate over the next 5+ years will increase Private credit financing exposure; half will keep allocations in line with past 5 years.
– ๐ฆ๐๐ข๐/๐ฆ๐ฃ๐๐๐ ๐ฎ๐ฟ๐ฒ ๐ถ๐ป๐ฐ๐ฟ๐ฒ๐ฎ๐๐ถ๐ป๐ด๐น๐ ๐ณ๐ฎ๐บ๐ถ๐น๐ถ๐ฎ๐ฟ ๐๐ถ๐๐ต ๐๐ต๐ฒ ๐ณ๐๐ป๐ฑ๐ฎ๐บ๐ฒ๐ป๐๐ฎ๐น๐ ๐ผ๐ณ ๐ฃ๐ฟ๐ถ๐๐ฎ๐๐ฒ ๐ฐ๐ฟ๐ฒ๐ฑ๐ถ๐ ๐ณ๐ถ๐ป๐ฎ๐ป๐ฐ๐ถ๐ป๐ด, ๐ฟ๐ฎ๐ฟ๐ฒ๐น๐ ๐๐ถ๐๐ต ๐๐ต๐ผ๐๐ฒ ๐ผ๐ณ ๐ฐ๐ผ๐บ๐บ๐ผ๐ฑ๐ถ๐๐ถ๐ฒ๐. Education should focus on Private credit financing key features – steady income, low price fluctuation; lower volatility than PE; reference to underlying commo ought to highlight downward protections (collateral and covenants).
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