LTP Trade Finance IndexÖ - January performance update

The LTP Trade Finance IndexÖ - the independent total return index covering the trade finance asset class - delivered an improved performance in the opening month of 2002, generating a total return of 0.36%.  Yet overall monthly returns have remained relatively weak since October 2001, the long series of capital gains generated by regular reductions in US Dollar LIBOR having come to an end. Indeed, with US Dollar LIBOR expected to trend upwards in 2002 trade finance investors will be looking for a fall in credit margins to generate capital gains this year, whilst at the same time hedging their funding costs.