Benefits of Receivable Puts

Hedge distressed debtors - Receivable Puts give you bankruptcy protection where you need it most - on highly distressed, uninsurable debtors. Receivable Puts are available on virtually any public U.S. debtor, including those most likely to file for Chapter 11 bankruptcy.
Enjoy non-cancelable protection - Receivable Puts are reliable. The underwriter's commitment under the receivable put contract is irrevocable. The underwriter cannot cut and run simply because the credit risk has deteriorated. Moreover, Receivable Puts do not contain "self-canceling" cease shipment clauses.
Turn risk into opportunity:

Reduce hedging costs - Receivable Puts are cost-efficient because you only pay for what you need. You can hedge credit risk on a single distressed debtor without paying for protection on your entire portfolio.
Shorten your contract period - Receivable Put contracts can be as short as 3 months. There is no requirement to sign a 1-year contract.
Reduce your paperwork - Receivable Puts require less administration then competing credit protection products. You need not report sales, past dues or probable losses.
Avoid "basis" risk - Receivable Puts hedge trade credit risk more effectively than credit default swaps (CDS). CDS are designed for bank loans, not trade receivables. Under a Receivable Put, the reference asset (trade receivables) matches the asset being hedged (trade receivables).