VIDEO | Distributing trade finance assets - The new era - Trade Finance Global

VIDEO | Distributing trade finance assets – The new era

By Deepesh Patel, Clarissa Dann

Deepesh Patel is Editorial Director at Trade Finance Global (TFG) and host of Trade Finance Talks. Deepesh regularly chairs and speaks at international industry events held by the IFC, EBRD, IMN, WTO, Financial Times and Economist Impact, as well as industry associations including ICC, FCI, ITFA, ICISA and BAFT.

Clarissa is the Editorial Director - Marketing at Deutsche Bank AG Corporate Bank and Presenter, Trade Finance TV.

Last updated on 27 Nov 2023

27 Nov 2023 2 min reading time

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This video is in partnership with Trade Finance TV.

Co-presenters Deepesh Patel and Deutsche Bank’s Clarissa Dann co-hosted an interview on Trade Finance TV, exploring how the age-old techniques around distributing trade finance assets are changing to adapt to the current market dynamics.

With around 80% of global trade financed by some form of trade credit, the ability to distribute trade finance assets is key to liquidity. This episode of Trade Finance TV talks to experts from two banks and two non-bank liquidity providers about how the originate to distribute model has evolved; not only between banks, but between originators and investors, and how it has been shaped by regulation and technology.

As Santander’s Jonathan Lonsdale puts it, “We need to tap into that pot of institutional capital. There is a limited amount of bank capital and no matter who syndicates what to whom it is a zero-sum game.”

Continuing the discussion of the previous episode, technology plays a huge part in making this happen and, explains Lloyds’ Cláudia Dos Santos, “needs to speak to our systems and allow our systems to communicate with other systems and it can’t be a one size fits all”. We hear more about the “standardized dashboard that can exist between the participant and distributor” from Liquidx’s Dominic Capolongo, and Christoph Gugelmann from Tradeteq closes with the point that just as containerisation simplified ocean-borne trade three decades ago, trade finance instruments need to be standardised “and put into boxes and make them available to the capital markets.”