The LTP Trade Finance IndexÖ - the independent total return index covering the trade finance asset class - performed poorly in March 2002, generating a negative total return of 0.17%. This result was driven by a sharp upward move in US Dollar interest rates, which overwhelmed a slight tightening in trade finance credit margins.
The long anticipated change in the direction of US Dollar interest rates has now begun to manifest itself, with US Dollar LIBOR increasing from 2.43% to 3.00% during the calendar month. In line with our overall market forecasts for 2002 published at the end of February on www.ltp.com, trade finance margins tightened once again in March, albeit by just...
