News

02:00 PM
Bruce Proctor, Managing Director, JPMorgan Global Trade Services (New York)
Bruce Proctor, Managing Director, JPMorgan Global Trade Services (New York)
News
Connect Directly
RSS
E-Mail
50%
50%

Trade Debt Continues to Be an Attractive Investment Option in a Shaky Global Economy

In a global economy rocked by subprime debt defaults, trade debt should continue to be looked at as a stable investment opportunity, thanks to both time-tested and cutting-edge tools to provide for the financing and settlement of commercial transactions.

The global credit crisis has emphasized the importance of trade finance. What new demands will corporates place on their banks in the current uncertain economic environment, and how can banks pursue growth opportunities in global trade finance in, for example, emerging markets? What technology investments must banks make to meet these new demands and capitalize on these opportunities?

Bruce Proctor, JPMorganLast year will be remembered as a year in which the global economy was buffeted by subprime debt defaults. While these events have shaved billions of dollars from portfolio valuations, the day-to-day economic activity of world commerce continues largely unaffected. Why is this the case, and what role does trade finance play in allowing buyers and sellers to transact with relative assurance that their goods will be delivered and paid for?

Over the years, trade practitioners have developed numerous mechanisms to provide for the financing and settlement of commercial transactions. Tools as traditional as the letter of credit as well as sophisticated hedging and risk distribution capabilities are designed to address the key risk aspects of cross-border transactions. While trade has been designated by many primary regulatory authorities as a "high-risk" business in terms of money laundering and potential dealings with sanctioned parties, the actual risk of financial loss to participants (including investors in trade paper) remains quite low by historical standards.

As a generally short-term, self-liquidating form of debt, trade risk provides a predictable underpinning to the global capital programs that allocate funds flows among various investment options. While changing market conditions and volatilities will certainly drive the trade community to explore new and different options for improving risk management techniques in the business, trade debt should continue to be looked upon as a relatively attractive investment opportunity.

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
Register for Dark Reading Newsletters
White Papers
Video
Cartoon Contest
Write a Caption, Win a Starbucks Card! Click Here
Latest Comment: This comment is waiting for review by our moderators.
Current Issue
Security Operations and IT Operations: Finding the Path to Collaboration
A wide gulf has emerged between SOC and NOC teams that's keeping both of them from assuring the confidentiality, integrity, and availability of IT systems. Here's how experts think it should be bridged.
Flash Poll
New Best Practices for Secure App Development
New Best Practices for Secure App Development
The transition from DevOps to SecDevOps is combining with the move toward cloud computing to create new challenges - and new opportunities - for the information security team. Download this report, to learn about the new best practices for secure application development.
Slideshows
Twitter Feed
Dark Reading - Bug Report
Bug Report
Enterprise Vulnerabilities
From DHS/US-CERT's National Vulnerability Database
CVE-2017-0290
Published: 2017-05-09
NScript in mpengine in Microsoft Malware Protection Engine with Engine Version before 1.1.13704.0, as used in Windows Defender and other products, allows remote attackers to execute arbitrary code or cause a denial of service (type confusion and application crash) via crafted JavaScript code within ...

CVE-2016-10369
Published: 2017-05-08
unixsocket.c in lxterminal through 0.3.0 insecurely uses /tmp for a socket file, allowing a local user to cause a denial of service (preventing terminal launch), or possibly have other impact (bypassing terminal access control).

CVE-2016-8202
Published: 2017-05-08
A privilege escalation vulnerability in Brocade Fibre Channel SAN products running Brocade Fabric OS (FOS) releases earlier than v7.4.1d and v8.0.1b could allow an authenticated attacker to elevate the privileges of user accounts accessing the system via command line interface. With affected version...

CVE-2016-8209
Published: 2017-05-08
Improper checks for unusual or exceptional conditions in Brocade NetIron 05.8.00 and later releases up to and including 06.1.00, when the Management Module is continuously scanned on port 22, may allow attackers to cause a denial of service (crash and reload) of the management module.

CVE-2017-0890
Published: 2017-05-08
Nextcloud Server before 11.0.3 is vulnerable to an inadequate escaping leading to a XSS vulnerability in the search module. To be exploitable a user has to write or paste malicious content into the search dialogue.

Dark Reading Radio
Archived Dark Reading Radio
In past years, security researchers have discovered ways to hack cars, medical devices, automated teller machines, and many other targets. Dark Reading Executive Editor Kelly Jackson Higgins hosts researcher Samy Kamkar and Levi Gundert, vice president of threat intelligence at Recorded Future, to discuss some of 2016's most unusual and creative hacks by white hats, and what these new vulnerabilities might mean for the coming year.