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  • Receivable Put
  • Credit Risk Tools

Receivable Put

Receivable Put allows clients to hedge the credit risk of their obligors to fulfill their accounts receivables obligations. The structure and mechanics include:

Trade Execution
Client delivers Product to Customer and carries Accounts Receivable Client purchases right to put outstanding receivables to J.P. Morgan upon a customer credit event In a credit event scenario, the Receivable Put will pay out a pre-agreed level of protection (can be set at 100% of face amount)
Settlement Process
When a Put Right is triggered, Client delivers its Accounts Receivable (now an Unsecured Claim) to J.P. Morgan J.P. Morgan confirms the validity of the trade claim J.P. Morgan pays Client the par value of the Accounts Receivable or a pre-determined purchase rate

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The information discussed herein is intended for sophisticated institutional clients. Vendor protection transactions and other credit risk tools mentioned above may not be suitable for all such persons. This information is not intended to provide accounting, legal, regulatory, credit, or tax advice, and prospective investors should contact their own accounting, legal, regulatory, credit, and tax advisors for additional information. J.P. Morgan assumes no responsibility or liability whatsoever to any person in respect of such matters. This material posted on this site is provided for information purposes only and is not intended as a recommendation or an offer or solicitation for the purchase or sale of any specific vendor protection product or other financial instrument. Information on this website is subject to change. J.P. Morgan endeavors to maintain the information as current and accurate but undertakes no duty to update information or to supply corrections. Clients should contact the individuals listed above for more information. This site has been published in the United States for residents of the United States only. This site is not intended for use by, or to provide any information to, investors outside of the United States, and such investors should not rely on any information or material appearing on the site.