Credit Where It's Due

Our new infographic explores the role of Credit and Credit Insurance in the economy:

Unsecured Trade Credit

  • Hasbro and Mattel were collectively owed $200m by Toys R Us at the time of it’s filing for bankruptcy.

Missed the boat?

  • The day after U.S. Labour holiday, credit-default swaps for Toys R Us were priced in a low probability of a near-term default (10%). At that time, $10 million of Toys R Us debt could be insured for an upfront payment of $300,000. Yet, on the eve of bankruptcy filing, that upfront cost had surged to $7.7 million.

Unexplained debts

  • $500 million of Mozambique’s $2billion debt, almost a quarter is unaccounted for according to Bloomberg.

‘Trading Abuse’

  • Credit Suisse was fined $135 million for a string of abuses in foreign-exchanging trading. This is six months after BNP Paribas was fined $350m.

Credit oils the Global Economy

  • 80% of global trade is supported by some sort of financing or credit insurance according to the World Trade Organisation.

Maersk moves into Trade Finance

  • Maersk is expanding its program of financing customers to customers’ suppliers. According to Maersk, they have underwritten credit in excess of $150 million in the program, helping shippers to cut between 15 to 30% of their shipping costs.

Click on the link below to view the infographic:

Post Date: 11/12/2017

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