HSBC Asset Management Launches Trade And Working Capital Solutions Strategy

Trading Systems
29.09.2025 09:15 am

HSBC Asset Management (HSBC AM) has launched a Trade and Working Capital Solutions strategy ("TWCS") in collaboration with HSBC’s Global Trade Solutions ("GTS") business, to provide investors with access to the growing opportunities in global trade finance.

The strategy will invest in a diversified portfolio of short-term trade finance and working capital assets including receivables finance, payables finance, trade loans, documentary trade and other instruments. With a global mandate, it will participate in facilities that provide funding to corporates and financial institutions involved in domestic and international trade.

Built on an open-ended, evergreen structure, the strategy aims to deliver attractive yields through a low-risk, diversified portfolio of real economy transactions. These transactions benefit from low correlation to other credit asset classes and low sensitivity to market timing, allowing for potentially more stable returns. The strategy will be managed by HSBC AM’s Capital Solutions team, established in 2022 to offer clients access to bank originated asset deal flow.

The launch comes amid an evolving global trade landscape that is prompting corporates to reshape their supply chains, driving demand for robust trade and working capital solutions. Through a collaboration with HSBC’s leading1 GTS business, the strategy will have access to HSBC’s new deal flow and existing assets, benefitting from its position as the world’s leading trade finance bank. HSBC’s extensive coverage spans more than 50 markets, with access to 85% of global trade flows and over 5000 working capital specialists.

Vivek Ramachandran, Head of Global Trade Solutions at HSBC, said: “Trade assets represent a growing asset class that institutional investors want access to. With over 150 years of trade finance experience, our global network and commitment to innovation uniquely positions us to connect institutional investors to the growth in trade. This new strategy brings together our global reach, origination strength and innovation to deliver robust trade finance solutions to clients and economies worldwide.”

Borja Azpilicueta, Head of Capital Solutions at HSBC Asset Management, added: “We’re pleased to introduce our Trade and Working Capital Solutions strategy at a time when shifting global trade dynamics are driving increased demand for trade finance, creating potentially compelling new investment opportunities. With access to the deal flow of the world’s leading trade finance bank, we’re well positioned to deliver a diversified private credit solution that combines high credit quality with low correlation to markets. This launch marks a significant milestone in the expansion of our alternative credit platform, broadening the range of differentiated solutions we offer to clients.”

The strategy is aimed at institutional investors across the UK and Europe, Asia, Canada, Australia and the Middle East.

Since launching in 2018, HSBC AM’s Alternative Credit Platform has experienced robust growth, achieving a CAGR of 33% over the past three years, and successfully raising over USD 7 billion while deploying across 150 transactions. Capitalising on the increased momentum, HSBC AM has recently launched three new strategies – NAV Lending, Global Transition Infrastructure Debt and European Senior Direct Lending strategies. This adds to existing alternative credit strategies in UK Direct Lending, Revolving Credit Facilities (RCFs), Structured Credit, and Infrastructure Debt.