Fast reading
- Global merchandise trade volumes reached US$25tn in 2022 – up from approximately US$14tn in 20071 – bolstered by rapid growth in so-called south-south trade (between developing countries), which is forecast to represent 40% of global trade by 20302.
- Among the factors that makes trade finance a unique investment proposition is that it sits between public and private markets: it offers institutional investors with the potential of uncorrelated returns of fixed income private markets – without any of associated liquidity constraints (Federated Hermes’ Trade Finance Strategy provides quarterly redemptions and daily mark-to-market information).
- The Federated Hermes’ Trade Finance Strategy invests across a wide spectrum of loan types – ranging from shorter-term self-liquidating structures which enhance the liquidity profile of the portfolio, to more longer-term alpha generating project finance deals – while also utilising our expertise within the reserve-based loan space.
Why invest in trade finance?
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1 UNCTAD
2 World Trade Organization
BD014993
