Research

LTP Trade publishes original research material on Basel II and capital modelling and structuring issues in trade finance.

The research may be accessed by clients and contacts who have been issued a password. If you wish to be considered for password access please register.

 
Email Password
Register
Forgotten password


Report type Title Date Text
Article ICC comment on Basel II Mar 09 After consultations with industry participants the ICC (International Chamber of Commerce) highlighted the problems that the increased capital charges under Basel II are causing for the trade finance industry and made some recommendations as to solutions.
Research Regulatory Response to Crisis Jan 09 Regulators are revisiting bank regulatory capital adequacy ratios in response to the financial crisis. This research article summarises the latest developments, including the proposed changes to Basel II capital calculations.
Conference Slides Basel II for Trade Finance registered only Jul 08 The Association for Foreign Banks in the UK ran a seminar in July on the consequences of Basel II for trade finance activities. The attached slides from BlueCrest Capital Management provide an overview of how Basel II works, the impact on trade finance, and how potential solutions can be found.
Article Basel II Capital Relief Transaction Feb 08 The groundbreaking Sealane transaction demonstrates what banks can do to obtain Basel II capital relief for growing their trade finance activities. Other private transactions have also been done on a bilateral basis between banks and funds. This article from Global Trade Review magazine (www.gtreview.com) studies the transaction details and examines the benefits.
Article Hedge Funds in Trade Finance Dec 07 Hedge Funds are a valuable resource to banks in trade finance for providing capital relief for trade portfolios as well as taking excess credit risk on a silent basis. This article, published in 'International Trade Money', examines how BlueCrest Capital Management's BlueCrest Mercantile Fund is working with trade finance banks and explores the consequences of the credit crunch.
Research Basel II Update registered only Oct 07 Banks in the EU as well as a number of other institutions move onto the Basel II regulatory capital regime from 1st January 2008. With just a few months to go, this research note provides an update on preparations in the trade finance market.
Research CDS for Trade Finance
registered only 		Jun 07 Credit Default Swaps are increasingly being used to sell down risk on trade finance transactions. This research article examines the latest developments.
Conference Slides Basel II Briefing
registered only 		Mar 07 James Parsons made presentations on 'Basel II for Trade Finance Transactions' and 'Transaction Management Techniques under Basel II' at the Basel II Briefing for trade finance bankers and insurers held in London. A copy of the slides is available on request for registered users.
Conference Slides Basel II & Insurance
registered only 		Feb 07 James Parsons moderated an expert panel on the topic of Basel II & Insurance at the 17th Annual Global Convention on Insuring Export Credit & Political Risk in London. A copy of the slides introducing the Basel II issues for insurance and setting out the questions for the expert panel is available here for registered users.
Research PG & LGD
registered only 		Dec 06 This research note reviews what PD and LGD are all about and the characteristics of these two important parameters.
Research A RAROC Primer
registered only 		Oct 06 This research note provides an introduction to RAROC and how RAROC can be improved on individual transactions and on portfolio risk.
Conference slides Basel II: The impact on forfaiting
registered only 		Sept 06 James Parsons was guest speaker at the 33rd International Forfaiting Conference in Istanbul. A presentation reviewing "Basel II: The impact on forfaiting - what are we up against and how much does it matter?" was followed by a lively discussion between the audience and a distinguished panel group.
Research Trade Finance and Basel II
registered only 		Aug 06 This research notes provides a comprehensive overview of the challenges that Basel II presents for trade finance business and briefly reviews how banks are responding to these challenges.
Conference slides Insurance, Derivatives & Syndications in Trade Finance Structures
registered only 		Jun 06 James Parsons was a course leader at this two day training seminar which examined some of the latest techniques in structuring and managing trade finance transactions.
Research Tranching for Profit
registered only 		Apr 06 Dividing portfolio risk into tranches is a well established technique for creating additional value from loan books. With talk in the market of tranched trade finance portfolios, this research note examines how it works.
Article Funds Bridge the Liquidity Gap Apr 06 Global Trade Review magazine reviews hedge fund involvement in the trade finance market and examines the drivers for future growth.
Research Interest Rates and the Trade Finance Portfolio Manager
registered only 		Apr 06 In this research we look at US interest rates and the economic outlook for the US and its effect on the trade finance market. We conclude that the current consensus equilibrium will be upset as the future direction of interest rates will become clear. This direction will have a major influence on the tone of the trade finance market over the next two to three years.
Article UNCTAD: Basel II impact on developing country commodity finance Apr 06 This report from UNCAD examines the negative effect that Basel II will have on commodity financing with emerging markets and examines possible solutions.
Conference slides Basel II for Trade Finance Seminar
registered only 		8-9 Feb 06 Following the success of the first Basel II for Trade Finance seminar in Amsterdam in October '05, the training seminar was repeated in February '06 in London.
Research Double Default Effects
registered only 		12 Dec 05 Double default effects are important to trade financiers, with "two name paper", guarantees and insurance contracts a major feature of the business. This research note examines the impact of Basel II and Economic Capital treatments of double default effects for trade finance transactions.
Conference slides Basel II and Insurance
registered only 		6 Dec 05 James Parsons gave a seminar to members of the Lloyd's Market Association (LMA) on the Basel II Framework and the opportunities for trade credit and political risk insurance.
Article Hedge Funds and Commodities Finance 1 Dec 05 Commodities Now, a leading magazine for the commodities markets, asked James Parsons to comment on the changing nature of bank provided commodities finance under Basel II and the increasing involvement of hedge funds in the market. A copy of the slides can be obtained here.
Conference slides Hedge Fund Investment in Trade Finance
registered only 		30 Nov 05 James Parsons spoke at the "Risk Collateral & Structuring in the Commodity Trade Finance Sector: Catalysts for Change" conference held in Geneva on November 30th and December 1st on the latest developments in hedge fund and other non-bank investor involvement in trade finance. The slides from this seminar are available
Article United Nations Report 31 Oct 05 The United Nations Conference on Trade and Development (UNCTAD) Information Economy Report 2005 in Chapter 3 examines the impact of e-credit information, Basel II, and e-trade finance in emerging economies. LTP Trade's insights on Basel II and e-trade finance is featured in the report, including James Parsons and Patrick Bayliss' publication of the first quantitative analysis of the impact of Basel II on trade finance, and James Parsons. work on how modern corporations use the internet for trade finance.
Research Specialised Lending: The price implications for commodities finance
registered only 		13 Oct 05 This research note examines the transaction pricing implications of the supervisory slotting criteria that many IRB approach banks will use for commodities finance under Basel II. It studies in particular the implied pricing floor imposed by the supervisory criteria and the consequences for over-collateralized transactions
Conference slides Basel II for Trade Finance Seminar
registered only 		12-13 Oct 05 James Parsons was the course leader at this two day seminar that included subjects such as "Successfully implementing Basel II within trade finance" and "Developing ways to reduce the effects of Basel II in transaction structures".
Research The Challenges that Basel II presents for Structured Trade Finance
registered only 		07 Sep 05 This research note examines the challenges introduced by Basel II that need to be overcome by banks active in structured trade finance.
Research Hedging Trade Finance Exposure in the CDS Market
registered only 		05 Aug 05 Here we summarise our experience covering some of the important issues surrounding the use of Credit Default Swaps to hedge trade finance credit risk
Research Trade Finance as an Alternative Investment
registered only 		08 Jul 05 In this note we examine the relative risk/return performance of a basic trade finance strategy to see how trade finance assets can be used as an alternative investment.
Conference slides Risk Management Seminar
registered only 		14 Jun 05 James Parsons provided a special presentation on "The importance of commodity price risk management under Basel II" at informa economics' 2005 European Risk Management Seminar in Amsterdam. A copy of the slides can be obtained here
Conference slides Innovations in Trade Services Conference
registered only 		13 Jun 05 James Parsons joined the expert panel at 'The European Trade Services Event for 2005'. Topics discussed by the panel included latest developments in the electronic trading world, the future of the letter of credit, and the impact of Basel II. A transcript of how Basel II will affect the activities of Trade Services providers can be obtained.
Conference slides 2005 Surecomp User Group
registered only 		24 May 05 James Parsons gave the KeyNote Address to participants at Surecomp's 2005 User Group in Montreux, Switzerland on the impact that Basel II is going to have on Trade Services activities, and the critical role of technology in the post-Basel II world. A copy of the slides can be obtained here
Research Information Asymmetries in Trade Finance
registered only 		06 May 05 In this research note we explore the instances of asymmetries of information in the trade finance market, the implications for different transaction situations, and the consequences for trade finance strategy
Research The Value of Trade Credit Insurance
registered only 		22 Mar 05 How does one know whether insurance is offering good value? And how do insurers know where to pitch their pricing?
Conference slides Basel II Conference: Key Trade Finance Developments
registered only 		17 Mar 05 "Well informed, professional, very articulate & clear - best speaker of conference!". A copy of James Parsons' slides at the 'Basel II: insurance, risk mitigation, and structured commodity finance: new techniques' conference may be obtained here
Conference slides Structured Trade & Commodity Finance Conference
registered only 		08 Mar 05 James Parsons spoke on 'The Impact of Basel II on trade finance structures' at the Structured Trade & Commodity Finance conference held in London on March 8/9. A copy of the slides can be obtained here.
Conference slides Emerging Markets Trade and Political Risk Conference
registered only 		11 Nov 04 James Parsons spoke on "How Basel II will Change your Trade Finance Business" at the annual Emerging Markets Trade and Political Risk Conference held in London on 10/11 Nov '04. A copy of the slides can be obtained by registering
Article Global Trade Review
Sept/Oct 04 What will your trade finance business be after Basel II?
Research The impact of Basel II on trade finance
registered only 		Sept 04 Our analysis covers the effects of the credit risk provisions of Basel II on different cross-sections of typical trade finance portfolios. It covers plain vanilla trade finance products and provides trade finance business leaders with a pointer as to what can be expected from analysis of specific portfolios.
Research 7 things exporters need to know about Basel II
registered only 		Sept 04 This document sets out the impact that Basel II is going to have for exporters who use trade finance to support their sales.
Research Hedging Interest Rate Risk
registered only 		20 Aug 04 A portfolio based approach has the advantage that interest rate management is removed from the position of each individual asset, and only net changes in the interest rate profile of the whole book are acted upon.
Research A Valuable Asset Class
registered only 		15 Jun 04 In this paper we look at the relative performance of the trade finance asset class, and examine how attractive trade finance assets are in comparison to other fixed income asset types.
Article Trade Forfaiting Review
Aug 02 It is well known within the trade finance market that trade-related obligations perform better than straight financial loans and bonds in a sovereign debt crisis. This convention has acquired the status of folklore given it fairly reflects both logic and experience.
 
...back at the top