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Greensill income built on high risk


Greensill income built on high risk
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Greensill Capital’s biggest source of income was buying and selling invoices from risky companies that required insurance, underscoring its precarious business model, court documents have revealed.
Some 90 per cent of Greensill Capital’s annual revenues, which were $US420 million ($540 million) in 2019, came from insured receivables, Greensill founder and chief executive Lex Greensill told the UK High Court of Justice in a witness statement after filing for insolvency last week.
Buying invoices from high-risk companies was more profitable for Lex Greensill’s Greensill Capital than buying invoices from investment-grade companies with better credit ratings.  ....

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