Why Trade Finance Is an Ideal Fixed Income Investment
Why Trade Finance Is an Ideal Fixed Income Investment
Trade finance delivers real-economy exposure with short duration, secured transactions, and historically low default rates.
For fixed income investors, the market’s current offerings are thin. Yields are compressed. Risk-adjusted returns are volatile. But one strategy continues to outperform without grabbing headlines: private credit trade finance.
At Financely, we help investors participate in structured, secured trade transactions that generate strong fixed income yields with risk profiles that rival investment-grade debt.
Why Trade Finance Works for Fixed Income Portfolios
- Short duration: Typical deals range from 30–180 days
- Self-liquidating: Backed by real contracts and payment flows
- Secured risk: Credit enhancement via bank instruments, collateral, or insurance
- Low correlation: Uncorrelated to equity markets and rate volatility
Default Rates Are Remarkably Low
According to the ICC, trade finance has one of the lowest default rates across all credit products — averaging under 0.3% globally. That’s lower than high-yield bonds, syndicated loans, or most private credit strategies.
How Trade Finance Compares to Other Fixed Income Assets
| Asset Class | Typical Yield (Net) | Duration | Security | Default Rate |
|---|---|---|---|---|
| Trade Finance (Private) | 8%–14% | 30–180 days | Secured by contracts/instruments | <0.3% |
| High-Yield Bonds | 6%–10% | 2–7 years | Unsecured or covenant-light | 2%–5% |
| Syndicated Loans | 5%–8% | 3–5 years | Variable | 2%–4% |
| U.S. Treasuries | 3%–4% | 1–30 years | Full faith and credit | Negligible |
Who This Works For
- Family offices looking to replace duration-heavy fixed income
- Private credit funds seeking short-term exposure with strong security
- Institutional allocators diversifying their debt book
- High-net-worth investors wanting stable yield and capital protection
How to Invest in Trade Finance via Financely
Our fund gives investors access to curated trade transactions that have been fully underwritten, contract-backed, and vetted by our credit team. Capital is deployed into real-world deals — not paper trades — across Africa, LATAM, Asia, and MENA.
You can learn more and request access to the investor deck here: https://www.financely-group.com/fund
Looking to Deploy Capital into Fixed Income Trade Deals?
Get access to Financely’s fund — and invest in real transactions with real counterparties, backed by real structure.
Explore Our Fund Book a CallBottom Line
If you want yield without equity risk — and real cash flows without liquidity lockups — trade finance is the most overlooked fixed income opportunity on the market. At Financely, we make it accessible to serious investors through a disciplined, structured, and globally diversified fund model.
Get Started With Us
Submit Your Deal & Receive a Proposal Within 1-3 Working Days
Submit your deal using our secure intake form, and receive a quote within 1-3 business days. Existing clients can connect with their relationship manager through our secure web portal.
All submissions are
promptly reviewed, and all communications are conducted through the intake form or the client portal for a seamless and secure process.
Thank you for considering working with us. A nominal fee of US$500 is required upon completion of each form. This fee covers the time and effort we invest in reviewing your submission and crafting a thorough proposal. We receive numerous inquiries and prioritize those that carry this fee, ensuring serious applicants receive prompt attention.
Trade Finance
Tap into solutions like letters of credit, bank guarantees, and payment facilitation. We address the challenge of global transaction risk through structured strategies that foster cross-border growth. Complete the form to unlock streamlined funding aligned with your commercial objectives.
Submit a RequestProject Finance
Access non-recourse funding for infrastructure, renewable energy, or other capital-intensive ventures. We mitigate capital constraints by isolating project assets and focusing on risk management. Provide your details to receive a structure that drives growth and maximizes returns.
Submit a RequestAcquisitions
Secure financing for business or real estate acquisitions. We ease transaction hurdles by reviewing cash flow, synergy opportunities, and exit plans. Complete the form for a customized proposal that supports your strategic investment objectives.
Submit a RequestFor Banks
Financely assists banks facing Basel III pressures by distributing trade finance deals and providing collateral for letters of credit. We reduce capital burdens while preserving client relationships and fostering service expansion. Submit your request to optimize your trade finance offerings.
Submit a RequestOnce we receive your submission, our team will review your information to determine feasibility. If eligible, you will receive a proposal or term sheet within 1–3 business days. Visit our FAQ and Procedure pages for more information.
Disclaimer: Financely provides financing based on due diligence and feasibility. Approval is not guaranteed, and past performance does not predict future outcomes. All terms are subject to review. Financely primarily assists with structuring and distribution. Qualified parties carry out the project if the client approves the proposal.
