The appeal of alternative investing in supply chain finance comes from the unique combination of an attractive yield and short duration. The investment is based on self-liquidating, insurable account receivables resulting from clearly identifiable events in the physical supply chain.
Low correlation to traditional equity and bond indices underlines the role of supply chain finance as a diversifier within the context of modern portfolio theory. Adding supply chain finance exposure to a diversified portfolio can provide a complement to traditional fixed income allocations.
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