Investment Strategies

for our global funding partners

$
0
Bn
cumulative volume of Trade Receivables Strategy in 2021
0
%
ESG screening on our investments
0
%
enhanced AML KYC RepRisk checks
0
countries where we facilitate financing
0
investor losses in Trade Finance Strategy*
0
investor losses in SME financings

How we create lasting value for Investors

Strategies

The Data Driven Finance Strategy invests in highly granular pools of short-dated SME loans and credits originated from Partner platforms carefully chosen and evaluated by Channel.

The portfolio is subject to industry, geography and credit quality limits. Channel evaluates the Partner as well as underlying SME portfolio trends and performance.

We provide regular portfolio monitoring and ESG overlay to each investment.

The Sustainability-Linked Strategy invests in high quality debt securities linked to pools of short-dated credit products. Originated from North America, UK, EU and Australia.

This is our long established receivables and inventory investment strategy. The strategy is designed to provide USD, EUR, GBP and AUD investors with floating rate stable returns on short-dated pools of diversified credit risk with low correlation to on-the-run indices.

Each investment is structured to meet an investment grade quality level.

Our Sharia-compliant strategies are carefully governed by the requirements of Sharia law and the principles of the Islamic religion.

Channel chose to develop this product line with Sharia-compliant investors as we consider it an important type of socially responsible investment.

Channel has managed securitised products since 2007 in a variety of asset classes as underlying collateral.

Digital ABS securities are notes issued by Luxembourg or Cayman vehicles managed by Channel. Originations are prospected, assessed and monitored using a data-driven approach.

Each Digital ABS is an ordinary ABS with loans linked to embedded finance programs and digital/blockchain offerings.

Notes can be listed or rated by rating agencies to suit investor preferences.

Operational Excellence
& Sustainability

Our ABS Transaction Reporting service is designed to provide independent oversight and a robust outsourced solution that monitors the full life cycle
of a transaction. It provides enhanced risk monitoring on a scalable basis designed to support the growth of your business. We take on new or existing
transactions.
Asset Eligibility
Asset Eligibility
Limits & Diversification
Limits & Diversification
Asset Price Calculations
Asset Price Calculations
Investor Digital Reporting
Investor Digital Reporting
Collateral Testing & Performance
Collateral Testing & Performance

Since 2020 we have:

  • Developed an integrated process that combines ESG integration, an engagement approach, and a superior security selection process
  • We are building a digital network to enable efficient SME lending
  • Increased our monitoring of reputational and AML KYC risks, drawing on over 25 variables and a scorecard technique to provide risk ratings
  • Built an automated process to continually track Partner and SME profiles throughout lifetime of transaction
  • Designed and deployed alternative data for monitoring including extensive usage of data reports from our partner, Neotas
  • All data is put into a feedback loop creating a network effect for all our partners, investors, and SME clients

PRI

A dedicated, responsible investor
Channel is committed to driving positive change through ESG engagement. Our ESG team works closely with our portfolio managers to identify risks and opportunities through providing research, data and insights, and sustainability strategy.

ESG and Sustainable Finance Experts
A dedicated ESG team with a deep understanding of sectoral and geographic nuances of our investment decision making.

A leading voice in ESG integration within the debt markets
We work closely with our investors, partners, and colleagues in the markets in advocating for increased transparency and growth of responsible investing.

In doing so, we are committed to employing best practices in ESG to ensure we stay at the forefront of this ever-changing area.

Channel’s risk monitoring systems is a cloud based, API centric web application to support all investor financings. We call it D-SaaS or Digital Securitisation-as-a-Service. Our D-SaaS drives efficient processing of our Digital and Direct Lending activities and is can also be provided to third party investors to facilitate their own program management needs.

We have been at the forefront of OpenBanking since 2018 and scrape bank account and accounting information to enhance our data networks in order to drive customer experience and mitigate risk. We also develop predictive models to estimate SME liquidity profiles with this data set.

Our digitalization initiatives facilitates fast and better lending decisions for our Partners and monitors our portfolio for our Investors.  But our network also improves the Partner’s experience providing a financing solution aligned with customers’ needs and helps us to provide more purposeful SME finance product through data insights.

*Trade receivables and Inventory programs to refer to Trade Finance Strategy

Contact Channel

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