The private banking arm of Standard Chartered has launched a new alternative credit offering focused on trade finance.
Standard Chartered Private Bank has launched a new investment product linked to trade finance, according to a statement. For the first time ever, high net worth investors at the bank will have access to a portfolio of short-term shipment corporate receivables.
The receivables will be originated by Singpoare-based Olea Global and exclusively distributed by Standard Chartered Private Bank. Olea is a fintech firm focused on supply chain solutions. It is majority-owned by Standard Chartered and incubated by the bank’s venture capital division, SC Ventures.
Trade Finance
According to Boston Consulting Group, the global trade market has estimated financing needs of $18 trillion.
«Trade finance is an up-and-coming asset class. Many institutional asset managers and sponsors have set up dedicated trade finance funds or added trade finance as a new asset class to their existing fixed income asset allocation,» the bank said. «The key benefits of this asset class include low correlation to traditional equities and bonds, and short credit duration.»
