Channel’s experienced team of originators, structurers, portfolio managers, risk advisors, and finance professionals take a disciplined approach to the asset management process.
Extensive upfront credit risk analysis is undertaken, ensuring detailed due diligence over the key characteristics and historical performance of the underlying assets, and financial analysis and operational capability of the originators and servicers of the assets.
Channel uses financial modelling techniques to structure transactions according to rating agency criteria. Channel has worked on multiple rated transactions with the major credit rating agencies.
A dedicated programme management team ensures that all reporting and asset performance obligations continue to be met during the life of each transaction.
We work with investors to ensure their investment is structured to meet their requirements.
Our asset and portfolio managers have in depth experience across a wide range of trade finance and trade receivable asset classes from both banking and business perspectives, giving Channel a unique ability not only to locate these assets, but also to manage them on an ongoing basis.
We are able to access a wide range of assets from our global network of contacts at commercial and development banks, non-bank financial institutions, sovereign wealth funds, through brokers, and in many cases direct from the businesses that originate trade finance assets.
Assets are reviewed in detail prior to take-on to ensure that they are of suitable credit quality, meet stress testing requirements, and are able to fit within conservative concentration and maturity limits as defined within pre-determined portfolio guidelines.
Risk retention is typically employed to align the borrower’s interests with those of the investor.
Where required, appropriate risk mitigation will be put in place through guarantees and/or suitable insurance products.
Clearly defined allocation policy (where relevant) dealing with client orders in a fair and equitable manner.
Use of independently managed bankruptcy remote vehicles to legally segregate transactions under management.
Monitoring and Aftercare
Strict financial obligations imposed on borrowers and servicers of the assets.
Exposure Limits and Reporting
Limits imposed on individual corporate and country credit risk exposure, and protective asset performance trigger metrics embedded in each transaction.
Appropriate cash and non-cash reserves sized according to that particular transactions features, and to the requirements of the investor.
A separate company remains on standby for the life of each deal to collect the receivables in the event that the Servicer is incapacitated.
Independent audit of underlying asset documentation by an auditor experienced in investigation over that specific asset class.
Specialist reporting and data management systems used to monitor transaction performance and cash movements on a daily basis.
Cash flows from all assets are managed in separate “lockbox” account structures managed by Channel.