Do you ever deal with actual borrowers?
No, in the case of trade finance CDOs for instance, our clients are banks. And the banks clients are exporters like Nike. Exporters do not need to be informed that their loan is being used within a synthetic structure. Unlike a ‘true sale’, the loan stays with the bank and the customer relationship is not compromised. The 'loan asset' is never transferred. Only the risk to that asset is purchased by $BRICS investors — this is what we mean by "synthetic exposure".
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