Trade Finance is a Promising New Asset Class

ALPHA GENERATION- Market Neutral and Absolute Return Strategy
UNCORRELATED RETURNS- Low to negative correlations with major market indices
DIVERSIFICATION- Reduces reliance on traditional return drivers
FLOATING RATE- Total returns are positively correlated to US LIBOR
SPECIAL STATUS- Trade stimulates economic growth and as such governments and organisations (WTO/G20) recognise trade debt to receive preferential treatment (Paris Club)
LOW RISK AND RELATIVITY- Majority of trade finance transactions are collateralized and also self-liquidating. Money is lent against identifiable transactions and repaid from their proceeds with short term maturity profile. Very different from corporate debt.