Money Managers, Lured by Rich Returns, Venture Into Risky World of Trade Finance

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Trade finance has historically been dominated by banks—but some powerhouses are dialing back

Money managers including Allianz SE and American International Group Inc. have found a window of opportunity to enter the business of financing international trade, long the domain of banks.

Banks finance trade deals by offering loans and letters of credit, as well as through more complex arrangements including the purchase of an exporter’s...

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