July 08, Vancouver, BC, Canada: Quote Platform Syndicate Inc., a specialist financial services outfit pricing political, trade and currency risks for the emerging markets, is now offering a range of tailor-made hedge contracts for corporations engaged in business in the broader Middle East. Risk-offset mechanisms will be structured for short and medium term maturities, depending upon the level of credit risk which can be secured between the contracting parties.
In recent months, Quote Platform has tested its pricing matrix in relation to (1) trade deals between India and Iraq, (2) discounting of Iran corporate risk and (3) real estate securitizations in Lebanon. A synthetic programme to test currency and interest rate swaps for the Gulf region has also yielded quotable price parameters.
Since Quote Platform’s pricing matrix fundamentally entails the creation or identification of risk buying syndicates, as counterparties, the availability of political risk insurance coverage has to be ascertained on a deal-specific basis. At this juncture, indicative 1-year political risk premiums for Iraq and Iran are 12% and 18% respectively; the premium for Iraqi Kurdistan is in the 7-9% range. A 2-year transaction political risk deal for Pakistan was recently concluded at 8% per annum.
Of course, given the chaotic pricing conditions in the debt markets, the largest number of inquiries relate to the offset of risks inherent in debt securitizations originating in the developing world, in particular the risk of a degradation of the securitized assets.
Quote Platform’s principals and partners have been involved in engineering financial products and arbitrage opportunities emerging markets for almost three decades.
For further information, contact:
Rakesh Saxena, Director
Quote Platform Syndicate Inc.
Canadian office: 3080 River Road
Richmond BC V7C 5N2 Canada
email: crossborderreports@shaw.ca and derivatives@shaw.ca
