Companies increase commodities hedging

Companies around the world are now hedging 55% of their commodity exposure as a result of increased volatility and the global financial crisis, according to a survey by Connecticut-based research consultancy Greenwich Associates.

Large companies in North America, Europe and Asia used derivatives and other financial products to hedge an average 55% of their energy commodity exposures in 2008, up from 45% in 2007, according to Greenwich Associates' 2009 Global Commodities Research Study.

"This trend was largely driven by refiners and producers of energy commodities, which together increased the share of their exposures hedged with financial products by 20%," Greenwich Associates said in a press release.

According to the

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Stemming the tide of rising FX settlement risk

As the trading of emerging markets currencies gathers pace and broader uncertainty sweeps across financial markets, CLS is exploring alternative services designed to mitigate settlement risk for the FX market

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here