Trade Finance (Modular Course)

Course overview Global trade has become more complex and the economic environment more uncertain. Corporates' earnings are volatile and trade financiers are required to cope with unfamiliar risks. It is extremely important for trade finance practitioners to have a complete understanding of the current scenario, the proper use of products and the risk attributable to different business situations. Risk avoidance and management underlines all trade finance activities. All trade finance practitioners, from banks and multinational corporations, credit rating agencies and regulatory authorities cannot afford to miss this course which enables you to mitigate, change and stylise your trade finance strategy. Module 1: Trade Finance Products and Mechanisms 10-12 November 2014, Singapore Summary of course content on Module 1 Contractual and documentary credit structures Third party documents Title documents, negotiability and endorsements Instalment credits Various types of letters of credit and guarantees Mechanism of documentation collections Accounts receivable financing Trade credit insurance Forfaiting Module 2: Commodity Trade Finance 13-14 November 2014, Singapore Summary of course content on Module 2 Determinants of price in commodity businesses Risk analyses of commodity flows Structures in commodity trade finance such as pre-export finance, buy-back, asset-backed finance and countertrade Securitisation of receivables and inventories Risk management in commodity trade finance Shipping aspects Default scenarios Methodology The course will be taught at an intermediate level. It should appeal to experienced trade finance professionals and users. It is assumed delegates will have knowledge of trade finance principles, tools and mechanisms. While treatment of every topic will commence at a basic level, the discussion will progress swiftly to the more evolved aspects. This is a highly interactive course. Many concepts will be introduced and illustrated through group discussions and the carefully designed case studies related to Asia and the emerging markets. Who should attend? Trade finance bankers Forfaiters Credit analysts from banks/export credit agencies Export managers in multi-national corporations Lawyers involved in trade finance Structured corporate bankers Emerging market bankers Risk managers Audit and compliance managers Monetary authorities and regulators Commodity bankers Traders Credit analysts Corporate bankers Risk managers Audit and compliance managers Lawyers involved in commodity trade finance Save US$1,690 when registering both modules on 10-14 November 2014! Trade Finance Products and Mechanisms 10-12 November 2014, Singapore Commodity Trade Finance 13-14 November 2014, Singapore Supporting publication
Trade Finance: M1 - Trade Finance Products & Mechanisms Day 1 Documentary credit structures Role of advising bank Payment Acceptance Deferred payment Negotiation Recourse and without recourse Contractual relationships in Letters of Credit (L/C's) transaction Issue of credit by non-bank institutions Changes introduced through UCP600 and critical articles Bank-to-Bank reimbursement structures Correspondent banking arrangements for reimbursements L/C's refinancing - by commercial banks/by government financial intermediaries Critical articles in URR725 Third party documents Clinker clauses Non-operative credits Critical articles in ICC645 (ISBP) Day 2 Export negotiation, purchase, discount Presentation period and "out-ofdate" documents Confirmation - open and silent Bank and country risks in letter of credit transactions Documentary risk Title documents, negotiability, endorsements Types of transport documents Bills of lading Mate’s receipt Seaway bill Airway bill Truck receipt Rail receipt Warehouse documents Lien, pledge and trust receipt Shipping guarantees Incoterms 2010 "Received for shipment" and "on board" bills of lading Instalment credits Revolving L/C's Red clause and Green clause L/C's Transferable L/C's Latest ICC decisions on transfer of credits Back-to-back Letters of Credit Support L/C's transactions Crude oil L/C's Other special-purpose L/C's Day 3 Standby Letters of Credit and guarantees Differentiating between standby L/C's and bank guarantees Bid bonds, performance bonds, advanced payment guarantees Contract guarantees Usage of standby L/C's in trade transactions Critical aspects of ISP98 and URDG758 Mechanism of documentary collections The "Hong Kong" clause Rights, responsibilities of remitting bank and collecting bank Avalisation/co-acceptance Financing collections Critical articles of URC722 Account receivable financing Factoring - an invoice discounting mechanism Contractual arrangements and cash flows in a factoring arrangement Forfaiting - without recourse financing Costs and yield calculations Insurable risk, insurable interest, utmost good faith and subrogation of rights cover notes, insurance policies/certificates ICC (A), (B) and (C) covers Assignment of covers and first loss payee Course conclusion and summary Trade Finance: M2 - Commodity Trade Finance Day 1 Commodities as a global business Determinants of price in commodity business The players and their competitive advantage Financing commodity trades Commodity contracts Title documents in a commodity finance transaction Risk analyses of commodity flows Logistics and the value chain Structures in commodity trade finance Pre-export finance Red Clause, Green Clause and other structures Tolling Inventory finance and Collateral Management Agreements Asset-backed finance Application of countertrade structures Day 2 Securitisation of receivables and inventories Cash flow acceleration Off-balance sheet considerations Risk management in commodity trade finance Risk mitigation in commodity trade Exchange-traded commodities Links between cash and futures markets Delivery to and from terminal markets Shipping aspects of commodity trade Contracts of affreightment Voyage, time and trip charters Chartering contract format Political, performance and other insurable risks Case studies Course conclusion and summary