Trade Receivables Financing Post the Credit Crunch. Alastair Malcolm. Trade Receivables. Trade debt exceeds bank debt by a factor of 3:1 An undervalued asset on a Corporate’s balance sheet (every £1 not bank-funded is Corporate capital) Receivables-backed loans impact Bank’s balance sheet
Much "take the Money and run" behaviour. This was partly driven by the
belief that housing prices will Always go up and partly by the belief that
if a problem with a loan occurs, it will be somebody else's problem.
What is galling in all of this is that the guys at the major commercial and
investment banks kept telling us, "We understand risk and we can
manage risk and get higher returns;" but it turns out that most of them
did not understand anything about risk.
Lawrence J. WhiteProfessor of EconomicsNYU Stern School of BusinessMay 2, 2008
Basel II and the Current Environment focus, too
Will risk bite back if U/W Remove the chains
It should be noted that this presentation and the remarks made by AIG representatives may contain projections concerning financial information and statements concerning future economic performance and events, plans and objectives relating to management, operations, products and service, and assumptions underlying those projections and statements. Please refer to AIG's Quarterly Report on Form 10-Q for the period ended March 31, 2008 and AIG's past and future filings with the Securities and Exchange Commission for a description of the business environment in which AIG operates and the factors that may affect its business. AIG is not under any obligation (and expressly disclaims any such obligation) to update or alter its projections and other statements whether as a result of new information, future events or otherwise.
This presentation may also contain certain non-GAAP financial measures. The reconciliation of such measures to the comparable GAAP figures are included in this presentation and in the Financial Supplements available in the Investor Information section of AIG’s corporate website,www.aigcorporate.com.
Disclaimer Notice: The information on products in this presentation are for general information purposes only and do not constitute advice.All data has been compiled from sources believed to be reliable. No warranty, guarantee or representation is made about the accuracy or sufficiency of any statement it contains.
AIG UK Limited is authorised and regulated by The Financial Services Authority. Registered in England: Company Number 1486260. Registered address: The AIG Building, 58 Fenchurch Street, London EC3M 4AB, United Kingdom. A Member Company of American International Group Inc.