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Credit Crisis spurs greater use of supply chain financing

Companies have been increasingly using supply chain financing, which involves using their own receivables to secure financing, as the credit crunch took hold and financial conditions continue to be tough, according to a survey from the consultancy Demica. “Banks in our research were emphatic in their view that SCF is a strong and rapidly growing market, and one which will provide an alternative source of funding for those corporates facing difficulties obtaining traditional bank credit,” said Phillip Kerle, CEO of Demica.

Cambodia rise exports push prices down

Cambodia will sell some of its 1 million-plus tons of rice in warehouses now that it knows it has enough for domestic demand, Prime Minister Hun Sen said. The news adds downward pressure on rice futures, which for two days have fallen by the daily limit set by exchanges. “With major producers in Southeast Asia braced for harvesting bumper crops in the next couple of months, the global market sees more supplies,” said Takaki Shigemoto, an analyst with commodity broker Okachi & Co.

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Moody´s stock looses 17% after rating error

In response to a recent Financial Times article, Moody’s has retained law firm Sullivan & Cromwell to do an external review of the agency’s process for rating European constant proportion debt obligations. Moody’s had rated complex debt products higher than warranted because of a glitch in its computer models but did not fix the error for nearly a year, despite senior staff knowledge. Meanwhile, U.S. Sen. Charles Schumer, D-N.Y., has called on the SEC to investigate the situation.

Oil price hits more than $135 a barrel in Asia

In Asia, oil reached a record high price of more than $135 a barrel today and then retreated. Concerns about supply, increasing global demand and a declining dollar are keeping crude futures moving up. Analysts are starting to question what will stop oil prices from increasing as they continue to set new records almost daily. Although there are technical indications in the futures market that crude might drop, few analysts are ready to call an end to the rally.

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