Finance Case Study
Finance Case Study

Service Overview

Profit improvement, corporate and revenue strategies for both Global and National firms require imaginative and resourceful planning and insights. Here is how we have been Building Better Business Solutions to Finance challenges across a variety of industry sectors.

Profit improvement, corporate and revenue strategies for both Global and National firms require imaginative and resourceful planning and insights. Here is how we have been Building Better Business Solutions to Finance challenges across a variety of industry sectors.
  
International Banking Industry-Improve Trade Finance and Commodity Trading

Solution: There was a concern that certain loans carried greater risk based on commodity volatility and value of the asset base terms. Changing the facility (Loan) terms that included a LIBOR based interest rate and taking paper ownership of the asset based commodity gave the Bank a better way of reducing volatility risk by trading the physical inventories in the futures markets.

Result: This allowed the Bank to better position themselves against the volatility of their loans in the market and improved both their realized and unrealized trading Profit & Loss statements, offsetting the loan values in case of a market declining volatility and loan default. The resulting model was one of the most advanced in its space and upon implementation, became the most profitable model of its kind. In the first quarter of operation, it accumulated $250 million in assets and $7 million in profits.

Project Details