Trade receivables finance
Operating in the dynamic import and export business is full of financial and regulatory hurdles. Whether a financial institution, small and medium-sized enterprise (SME), or a large corporate, you will likely need specialized assistance to navigate the ins and outs of your international trade transactions. Howard Scott Mckinley SA’s vast global network and specialized consultants will assist you with financing, settling, and mitigating any number of risks you may encounter in this business.
We have a specific focus on our clients’ individual needs, which allows you to rely on the expertise of a renowned and trusted bank as your financial partner. Take the opportunity to benefit directly from our proven experience and financial expertise by letting us know how we can help you.
High quality solutions to global clients
Advising and confirming letters of credit
Specialized teams advising on structuring transactions
Global securities finance
The Global Securities Finance (GSF) team has a proven track record of delivering our clients’ exceptional service, reliability, and ‘one-stop’ security finance solutions. As a top tier global financial institution, Howard Scott Mckinley can offer highly competitive financing levels and trading structures.
Howard Scott Mckinley SA GSF’s added value
Market access: Howard Scott Mckinley SA global footprint and local market knowledge is there to offer you access to both developed and emerging markets
Flexibility: Howard Scott Mckinley SA can structure securities financing instruments to suit your requirements
Currency: Cross currency products increase the elasticity of Howard Scott Mckinley SA product range (FX capable)
Leverage: Returns can be enhanced by financing on margin
Client statements: Howard Scott Mckinley SA provides clear and concise online statements covering ‘up to date’ client positions.
Synthetic portfolio solutions (SPS)
Synthetic portfolio solutions is a group of products that individually, or designed as a custom package, enable a client to gain exposure to the performance of particular security, index, or custom basket of equities. The specific financial products within SPS include, but are not limited to:
Contract for differences (CFD)
Total return swap.
Equity lending and repo (ELR)
Equity lending involves the lending of an equity position to a borrower versus some form of collateral at an agreed upon margin and interest rate for the term of the loan. The primary motivation behind equity lending is a desire by the borrower to acquire a specific security in order to cover a market short position. The rate paid by the borrower for the stock is dependent upon the demand for the particular security. The owner/lender of the shares maintains ownership of the shares, and is entitled to receive substitute payments on all corporate actions that transpire during the course of the loan.
However, the lender does pass voting rights to the borrower of the stock for the duration of the loan. The lender maintains the right to ‘recall’ the stock loan at any time – in the event of a recall, the borrower is required to return the shares to the lender on or before the standard settlement for the country in which the equity trades. Equity lending structures can also be used for short term financing of long holdings. All of the obligations are documented under market standard documentation (GMSLA). Repo structures (see below) can also be employed for equity business using a GMRA.
Fixed income repo (FIR)
Repurchase agreements, commonly referred to as ‘repos’, are contracts involving the simultaneous sale and future repurchase of an asset. The buyer in effect lends the seller money for the fixed period of the agreement, and the terms of the agreement are structured to compensate the buyer. The seller agrees to buy back the asset at the same price at which they sold it on the future repurchase date. This buy and sell represents a temporary transfer of ownership. The seller pays the buyer interest on the implicit loan created by the transaction.
Linear equity derivatives (LED)
These are typically traded over-the-counter where the underlying asset can be a single stock, a basket of stocks or an equity index. The product at a basic level enables the client to gain long or short exposure to the underlying asset, which offers many advantages to trading in the physical securities. The specific products within LED include, but are not limited to:
Total return swap
Price return swap
Single stock futures
Options reversals and conversions.
Please note that Howard Scott Mckinley SA does not have a banking license in the US and is therefore not permitted to conduct banking activities in the US. Outside U.S Howard Scott Mckinley SA offers a full array of wholesale financial products such as Third Party lending, corporate finance and a full range of financial markets products and services to its corporate and institutional clients.
Financial institutions trade finance
Trade finance services have enjoyed a prominent position within ING ever since we laid the foundations of our extensive banking network. We believe in the necessity of qualified trade finance experts who can provide consistent and trustworthy service to financial institutions and continue to develop of a range of high quality products.
In today’s global economy companies seek a partner who can support them in their expanding business. With Howard Scott Mckinley SA you can facilitate your client’s global business activities.
We provide financial institutions with the following trade finance products at competitive pricing:
Letter of Credit advising and confirmation
Bank guarantees and Standby Letters of Credit
FI trade Lending