The LTP Trade Finance IndexÖ - the independent total return index covering the trade finance asset class - continued its 2002 rally in February, generating a total return of 0.53%. This represents the best monthly return since September 2001, and the first positive capital return since October 2001.
As discussed in previous updates the market regards cuts in the US Dollar LIBOR rate as a thing of the past, leaving trade finance investors reliant upon cuts in the average credit margin to generate capital gains. Our country-by-country forecasts published at the end of February on www.ltp.com suggest that, overall, credit margins will indeed trend downwards in 2002, although investors may be wise to check that...
