Unfortunately at BNPP the level of risk management is so absurd that great deals get rejected because of risk, when they very well should be approved. NYCC Abander your an idiot because the reason why BNPP did so well throughout the crisis is due to their risk management and due diligence. The exotic products is part of different division its not structured finance, the SF does the things I described above, and revolvers/project finance deals aren't so quant. I wouldn't say its ridiculously quantitative, as the derivatives guys do their own thing which is separate and part of capital markets in BNPP. if structured finance aviation has a client, they'll have DCM come in and pitch a HY bond or the interest rate desk come in and pitch a swap, etc. The structured products people were mentioning earlier like convertibles, securitizations, etc is done by different groups. Project Financing, secured and unsecured loans, revolvers, etc.) It is actually very highly regarded worldwide and in the U.S, the top groups are top 5 ranked worldwide and in U.S., especially in Aviation, O&G, Offshore, Shipping, etc, basically very capital intensive businesses where having a huge balance sheet helps. In order to make this work, different mechanisms are put together and this includes the role of insurance and a collateral manager and an escrow agent.At BNPP Structured Finance operates similarly to a coverage group in a bank, but it does it's own financing (i.e. In this kind of lending, financings are structured in a different manner for the business with the aim of maintaining an independent structure that can work on its own. In a general scenario, structured trade finance is used for different kinds of lending. What makes structured trade finance important? Here the main focus remains on the underlying business cash flows and the structure. One of the reasons why structured trade finance is found to be attractive is that compared to the loan, the capability of the borrower who is part of the transaction is not much looked at. It even helps with diversifying the funds, lengthening the payment times, enhancing the ability of the clients to increase the size of their facilities, and strategic procurement. Such structures in the transaction help to have better resilience to the trade business. The main idea behind going for structured trade finance solutions is to get rid of all the risks that come with trading in a specific country or different jurisdictions. Why go for structured trade finance options?

If we look at the whole structure, you will understand that it comes with a good enhanced security mechanism and this helps to support borrowers in a good sense. The structured trade finance enjoys the support of limited recourse trade finance ways and focuses mainly on product flows cross-border.

So in such cases, money is lent based on the set business trade cycle. This means that they will get their money back once the products are exported or sold out. Now the parties taking up the money are self-liquidating. Say, for example, you will find here pre-export finance, warehouse financing, borrowing base financing, etc. However, not all are provided with the same kind of package, it varies based on the need. The commodity sector majorly follows this kind of trade finance and it is mainly used by producers, processors, traders, and consumers. Such kind of finance is agreed between two parties in a bilateral trading relationship by forming a proper structure. STF or Structured trade Finance is a complex type of finance and is usually used for commodity trading of large quantities or products of high-value. The structured trade finance method is used by many trading houses, organizations, banks, etc. This kind of Trade Finance is used in place of conventional banking in order to promote bi-lateral trade relationships with high-value transactions using non-standard security measures. Such kind of finance method is generally used in the case of cross-border transactions and developing countries. Structured trade finance is a kind of debt finance that is followed by alternative finance solutions. There are more things to know about it, and it has been explained below: It has been used for cross-border trade with a proper structure in place. Structured trade finance is an alternative lending option, and it is a type of debt finance followed by many businesses. What Is Structured Trade Finance And Why To Use It?

Structured finance definition