IM9 · Commodity Instrument Engineering

Commodity Financing, Inventory & Embedded Structures

Fund the barrel. Secure the collateral. Find the embedded derivative.

Master commodity financing and inventory structures: prepay and commodity repo, inventory and borrowing-base finance, metal warrants and warehouse receipts, streaming and royalty structures, pre-export finance, and the embedded derivatives and financing optionality that sit inside contracts nobody labelled as derivatives.

Prepay & repo · Inventory finance · Borrowing base · Warrants & receipts · Streaming · Embedded derivatives

Enrol or enquire See the 100 chapters

100 chapters · 10 modules · multi-commodity · one continuous instrument estate

How it is built

Design it, book it, value it, risk it, operate it, implement it

100 chapters does not mean 100 definitions. This programme follows the academy's standard ten-module architecture, so the instrument is taken from first principles through to a working CTRM representation, using the same structure as every other programme in the academy.

Worked cases run on NorthStar Global Commodities, a fictional instrument book created for teaching. It does not describe any real firm, person or transaction.

Curriculum

10 modules · 100 chapters

M0 Commodity Financing Foundations Ch 1-10 · 10 chapters
  1. What a Commodity Financing Instrument Actually Is
  2. Trading Economics vs Financing Economics
  3. Secured Lending vs Title-Based Financing
  4. Commodity Collateral
  5. Funding Tenor and Commodity Lifecycle
  6. Ownership, Possession and Control
  7. Commodity Financing Cashflow Architecture
  8. Embedded Market Risk
  9. Commodity Financing Lifecycle
  10. NorthStar Commodity Finance Estate
M1 Inventory Finance & Commodity Repo Ch 11-20 · 10 chapters
  1. Inventory Financing Fundamentals
  2. Commodity Repo Economics
  3. Repo Haircuts
  4. Daily Collateral Revaluation
  5. Margin Calls in Inventory Finance
  6. Inventory Substitution
  7. Inventory Release and Drawdown
  8. Repo Roll and Extension
  9. Repo Default and Liquidation Economics
  10. Inventory Finance & Repo Lab
M2 Prepay, Pre-Export & Production-Linked Finance Ch 21-30 · 10 chapters
  1. Commodity Prepayment Fundamentals
  2. Prepaid Forward Economics
  3. Pre-Export Finance
  4. Production-Linked Repayment
  5. Offtake-Backed Financing
  6. Prepay Discount and Implied Funding Rate
  7. Production Shortfall Risk
  8. Commodity Price Decline in Prepay Structures
  9. Prepay Restructuring
  10. Prepay & Pre-Export Finance Case
M3 Borrowing Base & Collateralized Commodity Lending Ch 31-40 · 10 chapters
  1. Borrowing Base Fundamentals
  2. Eligible Inventory
  3. Eligible Receivables
  4. Advance Rates
  5. Concentration Limits
  6. Borrowing Base Reserves
  7. Availability Calculation
  8. Borrowing Base Redetermination
  9. Borrowing Base Deficiency
  10. Borrowing Base Engine Lab
M4 Warehouse Receipts, Warrants & Title Documents Ch 41-50 · 10 chapters
  1. Warehouse Receipt Finance
  2. Metal Warrants
  3. Bills of Lading in Commodity Finance
  4. Inventory Certificates and Inspection Evidence
  5. Document of Title vs Operational Record
  6. Pledge and Encumbrance State
  7. Multiple Claims on Inventory
  8. Warehouse Risk
  9. Duplicate Financing and Collateral Fraud
  10. Warehouse & Warrant Control Lab
M5 Receivables, Payables & Trade Finance Structures Ch 51-60 · 10 chapters
  1. Commodity Receivables Finance
  2. Factoring and Receivable Purchase
  3. Supply Chain Finance
  4. Letters of Credit
  5. Standby Letters and Bank Guarantees
  6. Documentary Collection
  7. Open Account Commodity Sales
  8. Receivable Discounting
  9. Collection Account and Cash Waterfall
  10. Receivables Finance Lab
M6 Streaming, Royalties, Consignment & Embedded Commodity Structures Ch 61-70 · 10 chapters
  1. Commodity Streaming Fundamentals
  2. Metal Streaming Structures
  3. Commodity Royalty Structures
  4. Volumetric Production Payments
  5. Consignment Inventory
  6. Vendor-Financed Commodity Supply
  7. Embedded Forward in Supply Agreements
  8. Embedded Option in Supply Agreements
  9. Financing Plus Commodity Optionality
  10. Embedded Structure Decomposition Lab
M7 Valuation, Market Risk, Credit & Liquidity Ch 71-80 · 10 chapters
  1. Present Value of Commodity Financing Cashflows
  2. Commodity Price Risk in Financing Structures
  3. Basis and Liquidation Risk
  4. FX Risk
  5. Interest-Rate and Funding Risk
  6. Counterparty Credit Exposure
  7. Wrong-Way Risk
  8. Liquidity Risk
  9. Stress Testing Commodity Finance
  10. Financing Risk Case
M8 Accounting, Operations, Governance & Control Ch 81-90 · 10 chapters
  1. Commodity Finance Accounting Boundaries
  2. Inventory Recognition Under Financing
  3. Interest, Trading Margin and Fee Attribution
  4. Accruals and Effective Yield
  5. Collateral Reconciliation
  6. Covenant Monitoring
  7. Exceptions, Waivers and Amendments
  8. Fraud and Operational Control Framework
  9. Independent Valuation and Collateral Price Control
  10. Month-End Commodity Finance Close
M9 CTRM/ETRM Architecture & Capstone Ch 91-100 · 10 chapters
  1. Canonical Commodity Financing Data Model
  2. Collateral Asset Model
  3. Encumbrance and Availability Engine
  4. Borrowing Base Service
  5. Financing Cashflow Engine
  6. Credit and Collateral Integration
  7. Trade, Inventory and Finance Event Architecture
  8. Multi-Commodity Finance Architecture Case
  9. Tier-1 Commodity Finance Implementation Lab
  10. NorthStar Commodity Finance Capstone
How it is delivered

Three ways to take Commodity Financing, Inventory & Embedded Structures

Self-paced is a document-and-media programme with lifetime access - no live sessions. Cohort and enterprise add live instructor-led training. Mentorship is not offered in any tier.
Feature Self-paced Cohort Enterprise
Format Written chapters, video explainers and podcasts Everything in self-paced, plus scheduled live sessions Everything in cohort, delivered privately to your team
Live sessions None Scheduled, instructor-led Scheduled, instructor-led, private
Mentorship Not offered Not offered Not offered
Access Lifetime Lifetime Lifetime for every enrolled seat
Pace Entirely your own Guided schedule with a peer group Agreed with your desk
Tailoring Fixed curriculum Fixed curriculum Sequenced to your markets, systems and governance
Best for Individuals learning around a job Individuals who want structure and deadlines Desks building the same capability together
For individuals

Get the programme guide

The full chapter list, what each module covers, and how the tiers compare - sent to your inbox as a PDF.

For teams

Run this for my desk

Private delivery for your desk, sequenced to your markets and systems. Tell us the team and we will scope it.

Run this for my desk

Bring this to your desk

Download the full curriculum, or talk to us about running it for a team.

Enrol or enquire See the whole academy