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AlphaWeek: Trade finance comes of age as an asset class
Published on:
February 21, 2022
Trade finance is the backbone of the global economy yet the shortfall between what banks can supply and what the market demands has continued to rise. The trade finance gap now stands at $1.7tn, according to the Asian Development Bank, leaving many businesses without access to the funding they need. Christoph Gugelmann looks at how, faced with increasing capital restrictions, banks are recognising that by distributing their trade finance assets to the capital markets, they can free up their balance sheets and essentially do more with less.