TXF Global Trade Virtual 2021
This year's global trade virtual event will look into the impact of covid-19 to the market and explore new opportunities
Overall volumes of global commodity trade financing fell by almost 50% according to the full-year 2020 TXF Commodity Finance report. Max Thompson reviews this significant drop and assesses the impact of the Covid-19 crisis on commodity-linked corporate fundraising alongside the retreat of several major international banks from the sector.
Peter Lugli, a supply chain finance expert and a veteran of Ariba, Amazon Business and Prime Revenue, takes a closer look at the financial engineering employed by Greensill Capital, especially the term ‘prospective receivables’, a contentious new asset class better coined as ‘ponderables’.
So many negative stories have hit the commodity finance sector through the past year. But it is definitely not all doom and gloom, as the big traders get stronger and the commodity boom looks set to run fuelled by the green energy transition, EVs and infrastructural development.