Commodity & Trade Finance
The Rockboro team has extensive experience in commodity and trade finance analysis
Commodities finance refers to structured short-term lending to finance reserves, inventories, or receivables of exchanged-traded commodities. These types of exposures are repaid from the proceeds of the sale of the commodity and the borrower typically has no independent capacity to repay the exposure. The structured nature of the financing is designed to compensate for the weak credit quality of the borrower. The exposure’s rating reflects its self-liquidating nature and the lender’s skill in structuring the transaction rather than the credit quality of the borrower. Assessing the creditworthiness of such transactions is a particular challenge due to the statistically significant lack of defaults and the disparate activities within this sector of specialised finance. Over the past ten years the Rockboro team has worked successfully with banks to implement PD and LGD regulatory-approved scorecard solutions for the Internal Ratings Based (IRB) approach.
Our offerings encompass PD and LGD scorecards as well as validation, credit scoring, credit training and credit process optimisation.