With 25 years experience in trade finance, structured finance and commodities trading, get a flavour of commodity trade finance with Christian Stauffer, CEO at EFA Group on how the structural aspects of trade finance funds offer income generating opportunities despite the banking regulations most recently brought by Basel III.

Christian Stauffer also discusses EFA Group’s performance, structural aspect of commodity trade finance strategy and its impact on NAV with Eurekahedge CEO, Alexander Mearns.

0:01 From an advisory to a fund management business, EuroFin Asia Group has over 20 years of experience in the trade finance industry.

1:43 Typical commodity trade finance fund structure

4:33 Actors and change in trade finance

4:50 Commercial bank market: a major player in the trade finance industry providing 80% of capital needs

6:12 The diminishing participation of banks in the market

7:28 Regulatory transition in assets of commodity trade finance

9:10 The impact of Basel III on banks in Asia and Europe

11:08 Ability of Asia to substitute part of the liquidity in the market over the European banking ecosystem

12:50 Basel III’s impact on European trading financing activities and opportunities

16:18 EFA Group’s performance, structural aspect of commodity trade finance strategy and its impact on NAV

18:50 Collapse of global markets – how does it impact commodity trade finance?

20:24 What affects returns in trade finance strategy?

23:00 Financial Times states: “The International Chamber of Commerce collected data from 21 global banks that provide more than US$2 trillion in short term export related credit or about 65% of the world’s total. They found that fewer than 1,800 of the than US$8.1 million transactions defaulted for a cumulative rate of 0.021 percent.” - Does EFA’s default rate mirror the FT quoted rate?

26:45 The types of investors that commodity trade finance strategy appeals to