In a context the need to diversify sources of business and revenues, Commodity Trade Finance (« CTF ») became an attractive new business line for many types of lenders (banks, hedge funds, family offices, corporates etc….).
This specific credit activity requires from lenders to constantly improve the relevant level of knowledge and/or degree of expertise in CTF dedicated staff/management, in order for them to be able to : master the numerous implied risks in a commodity trade operation (political, logistical, currency, commodity price, counterparty etc.) and understand/ follow the underlying commodity markets rules, practices and trends.
It is mandatory for any CTF lender and dedicated staff/management to react in an appropriate manner to any adverse market situation, market collapse or negative trade event occurrence, in order to avoid the generation of a credit loss generation due to staff/management ignorance, misunderstanding of the situation, inadequate reaction or poor decision making.
Upon completion of this course, the participants will be able to :
Understand and apply the relevant best practices of the CTF (Commodity Trade Finance) Industry, with a focus on the particularities linked to the petroleum industry
Use the various risk mitigation tools available for mastering credit exposure
Assess a credit file, to structure a credit operation and price it (Risk Adjusted Pricing)