The LTP Trade Finance IndexÖ - the independent total return index covering the trade finance asset class - delivered a lacklustre return in September, equivalent to just 0.38%. More strikingly however, the Index credit margin widened by another 10 basis points to 196 over LIBOR at September 30th, driven by events in Brazil. The Brazil effect has continued into the early part of October, pushing the Index credit margin out above 200 basis points to a 2002 high.
The outcome of the Brazilian elections may not have been resolved at the time of writing this, but the financial markets have delivered their verdict on leftist candidate Lula's strong showing in the first round of voting....
