On September 15, 2008, Lehman Brothers, the fourth-largest U.S. investment
bank, filed for bankruptcy, marking the largest bankruptcy in U.S. history and
the burst of the U.S. subprime mortgage crisis. Concerns about the soundness of
U.S. credit and financial markets led to tightened global credit markets around
the world. Spreads skyrocketed. International trade plummeted by double digits,
as figure O.1 illustrates. Banks reportedly could not meet customer demand to
finance international trade operations, leaving a trade finance “gap” estimated at
around $25 billion.
Welcome to the second edition of the Trade Finance Guide: A Quick Reference for U.S. Exporters. This guide is designed to help U.S. companies, especially small and medium-sized enterprises (SMEs), learn the basic fundamentals of trade finance so that they can turn their export opportunities into actual sales and achieve the ultimate goal of getting paid—especially on time—for those sales. This guide provides general information about common techniques of export financing.
Encyclopedic Dictionary of International Finance and
is written and compiled
for working professionals engaged in the fields of international finance, global trade, foreign
investments, and banking. It may be used for day-to-day practice and for technical research.
is a practical reference of proven techniques, strategies, and
approaches that are successfully used by professionals to diagnose multinational finance and
If you want to learn how to be a super-trader, then closely examine the
concepts in this book. It is based on a proactive trading program that
has helped my firm, SAC Capital Management, LLC, grow from a $20-
million hedge fund to one handling over $500 million annually after
only five years.
I have been trading the stock market for twenty years. Originally, I
made my trading decisions by watching the ebbs and flows of the ticker
tape. I knew very little of the fundamentals of the companies I was trad-
ing and based my decisions on the tape action. Later, as I refined my
art, I began...
Traders talk amongst themselves, not necessarily to discuss bullish or bearish
market opinions, but rather to share insights into the nature and quirkiness of this
business. The mental toll trading exacts definitely forms bonds. When we open up it
is always surprising to discover the similarity of lessons learned, experiences shared,
and how we all independently arrive at the same conclusions. Often in talking with
each other we're really looking for clues into our own heads, hoping to understand
ourselves a little better.
Trading the stock futures markets is more complex than most traders realize.Tranding is a vast pespecitve made up of chart interpretation, entry methods, protective stops, money management, diversification, and psychology. Each of these subjects requires the sevelopment of a perspective.
Most discussions of corporate financing policy focus on long-term
liabilities such as common stock, preferred stock, debentures,
loans, and leases. Yet trade credit—credit extended by a seller
who allows delayed payment for its products—represents a substantial component of both corporate liabilities and assets, especially in the
case of middle-market companies. For the 3,350 non-financial Nasdaq firms
covered by COMPUSTAT, accounts receivable amounted to 19% of corporate
assets, and accounts payable were 26% of corporate liabilities, at the end of 1992.
The use of English language for cross-border communications is important in many
areas of trade ranging from tourism to the trade in financial services. This is in order to build
a stronger regional economy through freely and openly communicating with one another.
However, the increasing involvement in trade, tourism and international relations
among APEC Member countries where English is not spoken as the first language poses
some problems and barriers in achieving aspired regional cooperation.
In my first lesson, “Trading Greenspan, Part I," I described the best way to trade
Greenspan during the two months when he delivers his Humphrey-Hawkins
testimony. But what about the other ten months? The first step is to recognize
that when Greenspan delivers a policy speech, the impact can span several
months. As I said before, this is because Fed policy doesn’t change on a dime.
Thus, once the Fed’s policies become clear, the markets behave as though they
assume that these policies will be in place for a while.
When we do a benefit-cost analysis, we have to value a range of commodities which are either inputs to or outputs of the project. Some of these commodities are traded (i.e. can be bought or sold on international markets) and some are non-traded (are not bought
or sold in international markets but are only traded domestically).
Chapter 11 introduces you to risk and return. After completing this unit, you should be able to: Know how to calculate expected returns, understand the impact of diversification, understand the systematic risk principle, understand the security market line, understand the risk-return trade-off.
The Committee evaluated the impact of its regulatory regimes on trade finance for low
income countries. For those countries, confirmed letters of credit are of specific importance.
Confirmed letters of credit provide exporters with additional protection against any losses
incurred from importers’ and issuing banks’ failure to meet their obligations of payments.
Chapter 13 explores the economic and managerial implications of this basic idea. After studying this chapter, you should understand: How to calculate expected returns, the impact of diversifi cation, the systematic risk principle, the security market line and the risk-return trade-off.
Trade finance has received special attention during the financial crisis as one of the
potential culprits for the great trade collapse. Several researchers have used micro level data
to establish the link between trade finance and trade, especially so during the financial crisis,
and have found diverting results. This paper analyses the effect of trade credit on trade on a
macro level through a whole cycle. We employ Berne Union data on export credit insurance,
the most extensive dataset on trade credits available at the moment, for the period of 2005-
This chapter describe the proprietorship, partnership, and corporate forms of business; identify the differentiating characteristics of a limited liability company (LLC); describe the benefits, risks, and basic tax aspects of various organizational forms; discuss the use of patents and trade secrets to protect intellectual property;...
Learning objectives of this chapter include: Identify the main forms of short-term borrowing by Australian companies, understand the characteristics of trade credit and calculate the implied interest rate, understand the main forms of bank lending and appreciate when each may be suitable to a borrower’s needs,…
Chapter 14 - Capital structure decisions. Learning objectives in chapter: Outline empirical evidence from recent studies on capital structure; assess the implications of the evidence for the trade-off, pecking order and free cash flow theories; explain how financing can be viewed as a marketing problem; outline the main factors that financial managers should consider when determining a company’s financing strategy.
After studying chapter 11, you should be able to: Understand the sources and types of spontaneous financing, calculate the annual cost of trade credit when trade discounts are forgone, explain what is meant by “stretching payables” and understand its potential drawbacks, describe the various types of negotiated (or external) short-term financing,...
Chapter 9 - Health and disability income insurance. In this chapter, you will learn to: Recognize the importance of health insurance in financial planning, analyze the costs and benefits of various types of health insurance coverage as well as major provisions in health insurance policy, assess the trade-offs of different health insurance plans.