Risk Management
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PrintChoosing the best credit protection tool is a critical decision for clients, and monitoring customer creditworthiness has become increasingly time consuming and expensive for large vendors. In today’s credit environment this issue has been exacerbated as customers undergo financial distress.
Vendors currently have few credit risk management options to minimize exposure to customers experiencing liquidity issues. J.P. Morgan’s Corporate Structuring and Solutions Group and Credit Trading Desk have developed a suite of Vendor Protection Products (VPP) to help address some of the growing concerns to mitigate credit risk.
Included in this suite of innovative products is the Receivable Put, which has been growing quickly and is becoming more readily utilized by companies of various sizes to manage their customer exposure. This product allows our clients to hedge the credit risk of their obligors to fulfill their accounts receivables obligations.
This instrument and other alternative products in our suite of VPP offer some substantial benefits to the existing and more traditional set of credit risk management tools, which include CDS, trade insurance, and factoring.
For additional information, please e-mail vendor.protection@jpmorgan.com or contact:
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Credit Trading |
Corporate Structuring and Solutions Janet Wiener |
The information discussed herein is intended for sophisticated institutional clients. Vendor protection transactions and other credit risk tools mentioned above may not be suitable for all such persons. This information is not intended to provide accounting, legal, regulatory, credit, or tax advice, and prospective investors should contact their own accounting, legal, regulatory, credit, and tax advisors for additional information. JPMorgan assumes no responsibility or liability whatsoever to any person in respect of such matters. This material posted on this site is provided for information purposes only and is not intended as a recommendation or an offer or solicitation for the purchase or sale of any specific vendor protection product or other financial instrument. Information on this website is subject to change. J.P. Morgan endeavors to maintain the information as current and accurate but undertakes no duty to update information or to supply corrections. Clients should contact the individuals listed above for more information. This site has been published in the United States for residents of the United States only. This site is not intended for use by, or to provide any information to, investors outside of the United States, and such investors should not rely on any information or material appearing on the site.