HSBC Launches Global Trade Finance Strategy for Institutional Investors

HSBC Asset Management launched a private credit strategy designed to provide investors with access to opportunities in global trade finance.

The new Trade and Working Capital Solutions strategy was developed in collaboration with HSBC’s Global Trade Solutions business, giving it access to HSBC’s new deal flow and existing assets, the company said in a Monday (Sept. 29) press release.

The TWCS strategy is available to institutional investors across the United Kingdom, Europe, Asia, Canada, Australia and the Middle East, according to the release.

The strategy will have a global mandate, will invest in a diverse portfolio of short-term trade finance and working capital assets, and will be managed by HSBC AM’s Capital Solutions team, per the release.

Borja Azpilicueta, head of capital solutions at HSBC AM, said in the release that the company is introducing this strategy “at a time when shifting global trade dynamics are driving increased demand for trade finance.”

“With access to the deal flow of the world’s leading trade finance bank, we’re well positioned to deliver a diversified private credit solution that combines high credit quality with low correlation to markets,” Azpilicueta said.

HSBC’s coverage spans more than 50 markets and has access to 85% of global trade flows and over 5,000 working capital specialists, according to the release.

Vivek Ramachandran, head of global trade solutions at HSBC, said in the release that trade assets represent “a growing asset class that institutional investors want access to.”

“This new strategy brings together our global reach, origination strength and innovation to deliver robust trade finance solutions to clients and economies worldwide,” Ramachandran said.

PYMNTS reported Sept. 16 that trade finance is becoming a growth engine for firms seeking to navigate the volatile macro environment.

Trade finance has become a frontline concern for global businesses navigating volatility, as access to liquidity and risk mitigation can tilt the scales for global businesses facing tight monetary policies, geopolitical tensions and tariff-induced supply chain fragilities.

In another move in the sector, HSBC said in May that it introduced HSBC TradePay for Import Duties to American business customers to simplify import duty payments while helping businesses optimize working capital.

The company said at the time that since the launch of TradePay in 2023, TradePay had made $2.3 billion of trade finance available across the world.