B2B finance

Page 14 of a recent report by Morgan Stanley focuses on The Receivables Exchange, about which I have posted previously. (The Morgan Stanley report emphasizes: " This is not a research report and was not prepared by Morgan Stanley research department. It was prepared by Morgan Stanley sales, trading, banking and other non-research personnel. Past performance is not necessarily a guide to future performance.") Here it is.

The report has some recent performance statistics, and says "The Receivables Exchange, a private company, started trading on November 18, 2008 to bring private capital to the market for SME [small/medium enterprise] credit. Via The Receivables Exchange, an SME can auction its receivables to the highest bidder(s) for a substantial advance rate. The Receivables Exchange provides straight-through processing and acts as collateral agent and servicer, using an innovative approach to mitigate default risk."

Here are my previous posts about the Receivables Exchange, which strikes me as quite an interesting venture in disintermediation of credit. (Full disclosure; I'm on their advisory board.)