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Showing posts from 2017

How Innovative Trade Finance Structures Can Remedy the Bad Loan Portfolios of Banks

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Your social media profile says a lot about you. Who you're friends with, where you work or go to school, and there might be a picture or two you don't want the world to see.

If we as people want to make it as professionals then we need to monitor what goes into our profile and weed out unprofessional material, which could potentially damage that reputation.

The same is true for financial institutions. They need to pride themselves with a friendly profile to represent the values of the institution. We have Facebook profiles and banks have loan portfolios.

A financial institution is only as strong as its profitability, capital strength, and asset quality. 

However, poorly managed portfolios can have negative effects for the bank's image and credit worthiness.

This guide will help you understand a new remedy to bad loan portfolios.


What Are Loan Portfolios?

Banks rely in great part on their ability to provide loans to people. Lending is a crucial part of the prosperity of fina…

5 Exciting Global Trends in Trade Finance

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Businesses thrive under pressure. And while every year brings its own set of challenges, it also brings its new sets of opportunity. Thus, as we look forward to the final quarter of 2017 and the beginning of 2018, it is exciting to consider potential innovations in trade finance.

Here are some trends to look forward to in the next few years. While they will prove to be challenging, they also prove to be exciting opportunities for those looking to invest in trade.


Faster Manufacturing
Just as trade finance played a role in the early development of international trade, it's also played a role in its innovation. One incredible way in which this has happened was through the creation of a faster rate of manufacturing.

International trade has encouraged a number of companies to develop faster mechanisms of development. This has allowed more products to be put on the market at a faster rate due to technologies such as 3D printing.

While these technologies have provided a number of chall…

4 Current Commodity Tips You Need to Know About

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Commodities are an incredibly strong investment choice. A great way to build a diverse portfolio, they lack the volatility of stocks while providing great room for financial growth.

But investing in commodities without knowing what you're doing is a bad idea.

If you want to make this investment, you'll need to develop an intelligent strategy. Here are some commodity tips to help you make that move.


Commodities Explained
Before you read any other commodity tips, you need to understand the concept. Commodities are structured trades around the delivery, sale, import, and export of a particular good. Popular commodities include oil, gold, and soybeans.

The most popular strategy for investing in commodities is signing a futures contract. These ensure that you will own the commodity for a set amount of time before selling it on a certain date at a specific price.

Here are a few tips for making the most out of your commodity trades in 2017.


Why ETFs Are A Good Choice

If you're loo…

How Is Brexit Affecting Trade and Export Finance?

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The Brexit vote will take another couple years to go into effect, but that doesn't mean businesses can't start anticipating the changes.

While the details of the Brexit deals' impact on export finance aren't clear yet, there are several areas that will likely be impacted in one way or another.

In this post, we'll examine how the Brexit deal will impact future trade and export finance.

What Brexit Means for Export Finance The world of United Kingdom export finance is currently up in the air, but there are key areas which will likely be affected. The changes will be contingent on the final trade agreements the UK makes with the European Union and other nations. Check out the list below to see what might change: Lower Export Prices Depending on the nature of the UK's future trade deals, prices for exported goods could witness a drop. If the UK continues to export to countries within the European Union, for example, producers might have to lower their prices to m…

Using Blockchain Technology Companies for Trade Finance

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One of the most propitious industries for blockchain technology is trade finance. Many of the world's largest banks are putting time into its research and development.

Thanks to a consortium of 71 global financial leaders, R3CEV, much has been uncovered about potential uses of blockchain technology.

Since 2016, R3 has executed several pilot runs in the marketplace to complement their research. They will continue to improve these strategies until ready to fully enter the market.

So, what are some of their findings of potential use? Here's the future of trade finance with blockchain technology companies.


Monitor Real-Time Status and Condition
One of R3's members, CBA, is a leading contributor to the research of blockchain technology. Currently, they are undergoing 3 different projects to analyze blockchain use.

They are conducting a trial run with exporters who ship cotton. A humidity monitor is placed inside the canister, which is linked to IoT and GPS.

This monitor allo…

Trade Finance as a Business Development Strategy

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Without trade finance, there wouldn't be Indian spices, clothes, or jewelry in the United States. Or Apple's iPhones in China, much less any other international product at any respectable distance from its origin.

In fact, according to Investopedia, the World Trade Organization (WTO) estimates that international world trade has expanded 80%-90% thanks to trade finance.

For this to continue, companies need to include trade finance in their business development strategies.

How do you do that? Learn how you can incorporate trade finance into your business development strategy.


Incorporate Inland Trade Finance in Market Penetration and Market Development
Market penetration and market development are key parts of a business development strategy. Market development involves selling more of your service or product to repeat customers.

While market penetration is about expanding your product or service to other cities and provinces, it can involve inland trade finance. As you may…

Strategic Trade Risk Mitigation Solutions

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Are you about to enter the domain of international trade and expand base in India? If yes, it is imperative for you to know about the variegated challenges you might have to face. To name a few, politics, law, finance and more, can affect your venture. With tonnes of responsibilities to shoulder, you may find it hard to concentrate on the trade risks and their solutions. In such circumstances, a trade finance company can come to your assistance.  The professionals can not only only tell you about the potential risks, but also advise you in trade risk mitigation planning. Here Are 4 Mitigation Strategies To Look Into


Decide on an Apt Business Partner
Your business partner in India is your support in an unknown, foreign territory. Choose a partner, which has professionals, who are familiar with the business practices, culture and regulations in the host country. Remember, a strategic alliance, with the right collaborator can provide you with a sound idea about your target market.

From …

Structured Trade Finance - What Does it Mean?

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Structured trade finance (STF), a type of debt finance, is used as an alternative to conventional lending. This form of finance is utilized regularly in developing countries, as well as, in relation to cross border transactions. The objective is to encourage trade by making use of non-standard security. STF is generally used in high-value transactions in bilateral trading relationships. As a more complicated type of finance, STF is commonly related to commodity trading.

Within the commodity sector, STF products are most prevalent. It is used by producers, processors, traders, as well as, end-users. These financial arrangements are tailored by banking organizations to meet the precise needs of the clients.

STF products are primarily working capital financing, warehouse financing and pre-export financing. There are also some institutions that extend reserve-based lending, as well as, finance the conversion of raw materials into products, along with other customized finance products.

In…

Technical Analysis of Euro, US 10 Years Treasury Notes, Commodities, CRB Index, DOW, NASDAQ, BSE 200 and DAX

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EURO The Euro bull run continued even as bearish sentiment is in single digits. This excessive near term bullish traders reading continues to mean that a 5 wave rise is closer to completion. For the rally to continue unabated a pause or consolidation is needed. That said the big picture remains bullish as everyone has the narrative wrong.



US 10 YEARS TREASURY NOTES The 10 year note has retraced almost 50% and wave c=a is nearly done. wave ii should be near completion and wave iii down is to unfold next soon.


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COMMODITIES Gold
Gold has its neckline of the lows [blue line], at 1238. So that is a key resistance level. Daily momentum did turn positive and prices broke out of the falling channel but some more signs are needed that the trend has changed to up for good.



Aluminium MCX
Aluminium rallied in 5 waves and retraced 61.8% at 121.70. Dipped to a low of 120.90. So these supports should help propel it into wave iii up iii=i points to 127.50



Crude MCX
Crude Mcx – is in wave…

Indian Sentiments Update

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The weekly chart of the Sensex provides for a more reliable count for the move now. With the moves since march fitting a rising channel. Wave 1 and 3 here are 5 waves and 3<1, so we are in wave 5 which will be smaller still. And will end at or before the upper channel line at 32300. Will it be a one side move in wave 5 or also a subdivision like the first two impulse waves. While both are possible, subdivisions do sometimes repeat and if so then this last 5 waves up could spend a whole month completing even with a smaller target. But it can end abruptly as well.


So we will have to see what happens when a smaller degree 5 waves up completes, do we get a trend reversal. The 5th wave can also end up being an ending pattern which would then be 3-3-3-3-3 in terms of its internal wave counts.
All the above would have to weighed on what the sentiment is doing? Will FII data remain reliable where P Notes are concerned? Locally registered FIIs can still trade derivatives. So of the Index f…

Technical Analysis >> Commodity, Brazil, Euro and Dollar Index

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SOY BEAN NCDEX Soy bean prices formed an expanding triangle near the 61.8% mark. Last time I wrote that a bounce can occur because of the triangle but as shown why not a bottom? Possible Wave Y is over. Either another X wave up retracing the Y or the start of a major impulse. The trend should be up as long as we are above 2650. Breakout of the triangle above 3035 to go to 3286.



COPPER MCX Copper Closed the week down. Now 365 is the next support. Halting near retracements it is still possible that copper is within a larger corrective structure. The recent rally is not certainly impulsive. So if 365 breaks wee can see it go back to test the 353 low [below 2.62$ to 2.48$].



ZINC MCX Base metals are showing a near term correction after Lead, Aluminium and Zinc look like completing near term 5 wave rallies. The indication therefore is of a positive trend ahead but after a pause correction or retracement. The size of a pullback is hard to say.
For Zinc below the 20dma at 173 is the immediate s…

Currency, US 30 Year Treasury Bonds, Nasdaq, DAX, Karachi Index and Commodity - Technical Analysis

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US TREASURY BONDS While the 10 year has already broken the rising channel 2 days ago the 30 year bonds are now at the rising trendline near 152. So a further decline in the bond market will get this second confirmation of a break down in the bond market. We would be at the start of a 3rd wave down in US bonds. [We have discussed this scenario and its impact in this months Long short report.]





USDCAD The last post identified the Wave B high at 61.8%. From there we have a 5 wave decline so the down trend is established. We may get the first retracement of the fall when the 5 wave decline completes but the larger trend down will resume again, till C=A is achieved. The RSI is getting oversold. 1.33 near the wave 4 high would be a resistance level during a counter trend move up. After that we may head to 1.25 in wave 3 of C.





EURO The euro/dollar did not achieve 1.15 and it is hard to say yet that prices have started wave 2 down. When they do we get a retracement of the entire 5 wave rise back…