Designing the instrument: inside a trade securitisation

The honest finding was that the structure works but is expensive at a single-project scale, and that the economics only become compelling with a pooled, repeat-issuance programme. That is stated plainly in the published paper rather than glossed over.

Securitising East African Agricultural Trade for Global Institutional Capital is available in the white papers library.

Having established in Session 06 that the exclusion is about packaging, we spent this session designing the package.

We walked through the structure end to end — the SPV, the receivables pool and its eligibility criteria, credit enhancement and where it comes from, the tranching, the currency hedge, the servicer, and the reporting an institutional holder would expect. At each step we asked what it costs and whether the yield still works afterwards.

This was deliberately the most technical hour of the series, and it is the backbone of the securitisation white paper.

• The SPV and the receivables pool
• Eligibility criteria and what they exclude
• Credit enhancement: sources and cost
• Tranching, currency hedging and the servicer
• Does the yield survive the structure?
• Open discussion