HSBC AM unveils trade and working capital solutions strategy
HSBC Asset Management (HSBC AM) has launched a Trade and Working Capital Solutions (TWCS) strategy together with HSBC’s global trade solutions business, giving it access to the bank’s new deal flow.
The new strategy, built on an open-ended, evergreen structure, will invest in a portfolio of short-term trade finance and working capital assets, including receivables finance, payables finance, trade loans, and documentary trade.
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By collaborating with HSBC’s global trade solutions business, TWCS will have access to both HSBC’s new deal flow and existing assets, with coverage spanning more than 50 markets and access to 85 per cent of global trade flows.
With a global mandate, TWCS will participate in facilities providing funding to corporates and financial institutions involved in domestic and international trade, which benefit from low correlation to other credit asset classes and low sensitivity to market timing, “allowing for potentially more stable returns”.
HSBC AM’s capital solutions team, which was established in 2022 to offer clients access to bank-originated asset deal flow, will manage the new strategy aimed at institutional investors across the UK, Europe, Asia, Canada, Australia and the Middle East.
TWCS is the latest addition, with HSBC AM having recently launched NAV Lending, Global Transition Infrastructure Debt and European Senior Direct Lending strategies.
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“Trade assets represent a growing asset class that institutional investors want access to,” said Vivek Ramachandran, head of global trade solutions at HSBC.
“This new strategy brings together our global reach, origination strength and innovation to deliver robust trade finance solutions to clients and economies worldwide.”
Borja Azpilicueta, head of capital solutions at HSBC AM, said it has introduced the strategy “at a time when shifting global trade dynamics are driving increased demand for trade finance, creating potentially compelling new investment opportunities”.
“With access to the deal flow of the world’s leading trade finance bank, we’re well positioned to deliver a diversified private credit solution that combines high credit quality with low correlation to markets,” added Azpilicueta.
Since its inception in 2018, HSBC AM’s alternative credit platform has raised more than $7bn (£5.2bn) and deployed across 150 transactions.
