Lex Greensill Spotted His Weakness Before Jet Flight
Credit insurers often get cold feet just when you need them most. Ironically, Lex Greensill knew that better than most.
Achilles’ heel.
Photographer: Ian TuttleThe trigger for the unwinding of Lex Greensill’s supply-chain finance empire was, in the end, rather arcane: Credit insurers didn’t renew coverage of some of the holdings in the Credit Suisse supply-chain funds for which Greensill sourced assets.
Credit insurers are a vital but often overlooked cog in the global trade system, providing cover for businesses in case their customers don’t pay their bills. Without the insurance underpinning Greensill’s invoice-backed loans, the assets became difficult to value and the funds closed to redemption, Bloomberg News reported. The Wall Street Journal and the Financial Times have other details about Greensill’s unsuccessful legal attempt to force credit insurers to maintain coverage.