Co-Founder & Co-CEO at Drip Capital, defining the strategic vision and overseeing product, business development and global operations.

International trade has increasingly become a key force behind global GDP growth. With steady increases in transaction size as well as payment periods, a lot of this trade has become reliant on trade finance facilitation by lenders. In fact, up to 80% of international trade requires some kind of financing.

Since the earliest days of commerce, trade has primarily been financed by institutions and individuals with deep pockets. These financial institutions have been focused heavily on financing large businesses and trading companies that have a reasonable assurance of success.

As a result, small and medium-sized businesses (SMBs) have been left out of the trade finance circuit, despite contributing significantly to global trade. The Asian Development Bank estimated that nearly 45% of SMB trade finance applications are rejected by banks and traditional lenders.

However, a new class of financier has stepped up to the plate in recent years, in the form of alternative finance providers. Data-driven and agile, these fintech firms (to include our own) are pushing to close the gap, relying on technology to break the barriers faced by traditional lenders in servicing SMBs. The success of these newer players in originating high volumes and strong credit quality — key requirements for institutional investors —has resulted in the resurgence of a particular investment asset: trade finance receivables.

The Return Of The Trade Receivable

In a cross-border transaction, there are two parties: an exporter and an importer (i.e., a buyer). A third party (a financier) is introduced when one party needs advance payments. When an exporter generates an invoice against an order from a buyer, with the expectation the buyer will pay that invoice, that invoice is a trade receivable. The

(Bloomberg) — U.S. stocks rallied, with the S&P 500 posting its biggest weekly increase since July, as traders bet lawmakers are moving closer to providing more fiscal stimulus. Treasury yields were mostly flat and the dollar slipped.

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The benchmark equity gauge rose for a third day with President Donald Trump saying he now wants an even bigger package than what Democrats offered. For the week, the index finished up 3.8%. The tech-heavy Nasdaq 100 jumped 1.5% on Friday, with chip maker Xilinx Inc. leaping on a report it’s in advanced talks for a $30 billion takeover by rival Advanced Micro Devices Inc.

“We’ve had this whipsaw around wondering if there will be more fiscal stimulus, which I think we desperately need to keep the economy rolling,” said Ron Temple, head of U.S. equity at Lazard Asset Management LLC.

European stocks rose as a host of companies raised outlooks, from Denmark’s drugmaker Novo Nordisk A/S to German online clothing retailer Zalando SE. Stocks fell in Spain, where the government’s cabinet met to declare a state of emergency for Madrid to control Covid-19. Italy’s 10-year bond yield fell a record low.



chart: Stocks with high capex, cash returns or shaky finances are trailing the market


© Bloomberg
Stocks with high capex, cash returns or shaky finances are trailing the market

Investors ended a volatile week with a risk-on attitude. With Trump recuperating from Covid-19 in the final stretch of the election campaign, they’re increasingly betting a Joe Biden victory is likely. Speculation is moving now to whether Democrats will sweep Congress too and then enact massive stimulus.

“There’s also the possibly you could see a Democratic sweep in the election and that raises the prospects for higher taxes, which would be a negative, but also for really pronounced stimulus and that could take some of the more extreme risks off the table,” said Giorgio

Funds in Refinitiv Lipper’s Inflation-Protected Bond (TIPS) classification (including both mutual funds and ETFs) took in $305 million of net new money for the fund-flows week ended Wednesday, October 7. These results marked the group’s sixteenth straight week of net positive flows which have produced a best-ever quarterly net inflow of $13.4 billion during the third quarter. This number shattered the previous record inflow of $8.2 billion which occurred during the second quarter of 2009 (Refinitiv Lipper began tracking flows data on TIPS funds during the third quarter of 2002).

TIPS is an acronym for Treasury inflation-protected securities. As its name suggests, TIPS are a type of Treasury bond issued by the U.S. government which are designed to safeguard investors against a spike in inflation. It may seem counterintuitive that TIPS funds have prospered from a fund-flows (and performance) perspective at a time when the country is struggling to fight off a significant economic contraction and inflation is well below the Federal Reserve’s target of 2.0%, but there are reasons that explain this. First, the performance of TIPS are positively correlated to the direction of the Consumer Price Index (CPI). The CPI is a statistic that is used to gauge the direction of inflation, and this measure has increased in each of the last four months. Other contributing factors which have the potential to drive an increase in inflation include the current record-low interest rates (near zero) and the Fed’s new policy to let inflation run unimpeded over its 2% target to compensate for times of low inflation. The Fed has stated that it expects interest rates to remain unchanged at least through the end of 2023. In addition, another round of fiscal stimulus from the government and an improving labor market are other factors which could serve to heat

By Joice Alves

LONDON, Oct 9 (Reuters)Rolls Royce RR.L shares on Friday were heading for their best weekly gain since listing in 1987 as the British aircraft engine maker’s plan to raise money to cope with the coronavirus travel crisis triggered bargain hunting among investors.

The value of Rolls Royce shares more than doubled in the last week to 228.90 pence, although that is still a far cry from the 690 pence they traded at before the coronavirus outbreak.

The company aims to raise a total of 5 billion pounds, including 2 billion from shareholders, to cope with a “worst case scenario”.

“(The recapitalisation plan) sets up Rolls-Royce sufficiently to navigate an uncertain recovery and removes any lingering concerns about liquidity – and even solvency,” said Berenberg analyst Andrew Gollan, keeping a “buy” rating on the stock.

Worries over a long-haul travel slump reduced Rolls Royce’s market value to just 3.8 billion pounds ($4.9 billion) from 20.5 billion pounds two years back.

“There is a clear willingness to go bargain hunting as traders begin to see the light at the end of the tunnel,” said Joshua Mahony, senior market analyst at IG.

Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown said there has been “renewed retail investor interest” with Rolls Royce shares the most purchased by her clients in the week ending Oct. 8.

The Capital Group of Companies, a major investor, raised its stake in Rolls to 8.70% from 7.91% on Thursday.

Rolls Royce shares were up 17.8% on Friday by 1136 GMT, among the top performers on the pan-European STOXX 600 .STOXX index. Analysts said the stock still looked cheap.

($1 = 0.7723 pounds)

Rolls Royce’s roller coaster ridehttps://tmsnrt.rs/30O27wZ

(Reporting by Joice Alves; Editing by Kirsten Donovan)

(([email protected]; +442075422345; Reuters Messaging: [email protected]))

The

Jockey John Velazquez riding Authentic gallops to the finish line to win the 146th running of the Kentucky Derby at Churchill Downs, Saturday, Sept. 5, 2020, in Louisville, Ky. (AP Photo/Darron Cummings)

Darron Cummings/Associated Press

In a matter of hours, the Preakness Stakes will bring down the curtain on the 2020 Triple Crown season.

Race organizers were probably bemoaning their bad luck as the Kentucky Derby unfolded. Authentic not only derailed Tiz the Law’s Triple Crown quest but also gave the Belmont Stakes winner little reason to make the trip to Baltimore.

Tiz the Law isn’t running in the Preakness, with his team instead focusing on the Breeders’ Cup Classic in November. That leaves Authentic as the clear favorite in the 11-horse field.

                       

Post Positions

  • 1. Excession (30-1)
  • 2. Mr. Big News (12-1)
  • 3. Art Collector (5-2)
  • 4. Swiss Skydiver (6-1)
  • 5. Thousand Words (6-1)
  • 6. Jesus’ Team (30-1)
  • 7. Ny Traffic (15-1)
  • 8. Max Player (15-1)
  • 9. Authentic (9-5)
  • 10. Pneumatic (20-1)
  • 11. Liveyourbeastlife (30-1)

Odds courtesy of the Preakness Stakes.

                  

Race Predictions

  • Win: Authentic ($900,000)
  • Place: Ny Traffic ($300,000)
  • Show: Thousand Words ($165,000)

           

As the odds illustrate, Authentic and Art Collector are commanding the lion’s share of attention heading into the race.

In addition to his Derby triumph , Authentic reeled off victories in the Sham, San Felipe and Haskell Stakes while running second to Honor A. P. in the Santa Anita Derby. Art Collector took first place in both of his graded stakes events this year (Blue Grass Stakes and Ellis Park Derby).

If recent history is any indicator, though, the likelihood of those two going first and second is slim.

The length of the race is likely one reason for