DIY Investor Magazine
/
2015 Issue
31
CONCLUSION
As with any investment a bond based on trade finance
is not suitable for everyone. Like all bonds it will
produce a regular fixed income flow, however, unlike
many bonds it is secured on the underlying collateral,
i.e. 100% first lien on the goods.
Some of the key concerns for bondholders might be:-
Some of the key concerns for bondholders might be:-
•
The Coupon: coupons can vary but 5.5%+ is
feasible
•
Loan-to-value: Investors can be immunised from
first 25% of any loss
•
Duration: as the underlying loans are often <100
days, the tenor of the issue might be 5 yrs
•
Default: historic defaults are circa 1% p.a. or lower
•
Liquidity: issues can be listed as retail bonds on the
LSE which provides ongoing liquidity
•
Accessibility: ssues are designed for retail investors
In March 2015, Beaufort Securities will be launching
the Octavo Trade Finance 6.25% GBP Bond (due 2020)
- a 5 Year Senior Secured GBP bond paying 6.25% pa;
a fully insured, asset-backed investment in Trade
Finance.
PHILIP GILBERT
Philip Gilbert is Head of Fixed Income & Structured
Products at Beaufort Securities. In March 2015,
Beaufort Securities will be launching the OC Finance
6.5% GBP Bond (due 2021) - a 6 Year Senior Secured
GBP bond paying 6.50% pa; a fully insured, asset-
backed investment in Trade Finance rated BBB+ by
ARC Ratings.
It is intended to list the issue on LSE. To find out more
about the bond, visit
