Rolling Out the Red Carpet

Many find the paper ships idea intriguing, but most look to more standard instruments when managing risk. Commercial shipping banks, as well as an array of smaller financial boutiques and investment banks, offer risk management advisory services.

Many shipowners pine for the red carpet treatment from banks. The treatment would be defined by these utopians as long-term unsecured swap lines which provide the full range of risk management alternatives. Citibank N.A.’s global shipping department provides the red carpet treatment to carefully selected clients. Loans, revolving credit facilities, cash management and risk management products are provided. In fact, Citibank’s shipping department has one of its members acting as a “transactor,” working on the bank’s trading floor to manage swaps necessary for clients’ charters and other business. The transactor structures charter hedges and does other deals in the derivatives area.

This is only an excerpt of Rolling Out the Red Carpet

Content is restricted to subscribers. To continue reading please Log-In or view our subscription options.