The trade finance landscape continues to change, and with that, comes opportunity. We took a review of the key 5 changes in 2018, and what this means for the industry.
- Non-bank financiers
The impact of Basel III on bank financing has certainly been priced in over the last few years. As a result of a reduced leverage ratio and risk appetite, banks and corporates have looked to off-balance sheet funding and securitisation to reduce exposure in trade finance lending, according to Investors Hangout.
- Short-term self-liquidating trade lines
Continued on from the above, the treatment of trade finance under Basel III continues.
Making this type of investment will keep your money safe. Your money will not be spent, but still you will earn some good returns from it. You are only required to make a deposit of a fixed amount of money into an account for a certain period of time. If you give a larger amount of money, you are going to make a larger amount of return. Additionally, if you deposit the money for a longer period of time, you will earn more.
- Metals Commodity Markets
Trading in tangible assets such as gold or silver, can give you high returns. The international scarcity of gold make it’s a viable commodity to trade in. The prices will never go down and the market is readily available. Trading in tangible assets such as precious metals are promising and people can hold on to them.
Although considered risky, trading in cryptocurrencies can give you very high returns. Cryptocurrencies have been on the rise and a lot of people are excited about them. To lower the risks of losing your money you need to first educate yourself how they work and what they entail. A lot of platforms have come up over recent years to offer a trading platform. To succeed in trading with cryptocurrencies, you need to understand how they operate and know about the trading patterns.
- Peer to Peer as an asset class
A lot of people are currently involved in peer to peer lending. The returns are not as high compared to other trading options but you will definitely make a good amount of money. Lending out your money helps diversify the risks. It is faster than bank lending options and the interests are a bit lower. This is why it is attractive to most people. There are many P2P lending platforms you can use to lend out the money.
You do not have to have tons of money to start investing. You can start small and grow your wealth. You just need to pick a few trading options you can leverage and grow your income. Growing wealth does not happen overnight. You will need patient and constant learning.