Changes to Trade Receivables Put (TRP)

March 17, 2015 | 55:32 Minutes

Join Tom Fitzsimmons and David Hartigan of Wells Fargo as they present on Changes to Trade Receivables PUT.

If you are a CFO, Treasurer or Credit Manager than you cannot afford to miss this discussion and presentation of case studies on opportunities to hedge account receivables with the Trade Receivable Put.

This is a capital markets based product that allows non-cancelable single-name credit protection for account receivable obligors. This can be a very powerful and cost-effective part of an accounts receivable hedging strategy when utilized properly.

o Experience has shown that most corporates are not properly integrating the TRP into their overall a/r hedging strategy and have a fundamental misunderstanding of the product’s operation and capabilities.

o The current TRP market is offering pricing levels and structures which have never been seen before in history and may never be seen again.

o The TRP can work to support funded a/r strategies like ABL Lines, Securitizations and Factoring.

o The TRP is not just an instrument to protect deeply distressed obligors, it can offer cost-effective coverage for better credits and can be used alongside traditional a/r hedging instruments, like insurance, for obligors where traditional markets have reached capacity limits.