Greensill Sold Itself the Bulk of $15 Billion Future Receivables

Greensill Capital sold about $15 billion of controversial debt investments backed by future sales in 2020, mostly to its German banking subsidiary.

The insolvent trade finance firm sold more than $11 billion of the securities -- based on so-called future receivables -- to Greensill Bank AG unit last year, according to a letter from founder Lex Greensill sent to a committee of U.K. lawmakers.

Securities backed by account receivables usually rely on invoices, but future receivables are guaranteed on sales that have not yet occurred and, as a result, are a far riskier investment. Germany’s financial regulator shuttered the Bremen-based ...