Hard times for metals markets

UBS topped the precious metals categories of this year's Risk commodity rankings, while Societe Generale won base metals, in a year dominated by volatile prices, illiquid markets and counterparty credit concerns. By Donna Haws, with research by Xiao-Long Chen

Metals markets have not escaped the strife triggered by the financial crisis. Having seen almost universal increases in prices in the first few months of last year, many metals plunged in the second half of 2008, as concerns about the health of the financial markets spread beyond the realms of subprime credit. Meanwhile, the bankruptcy of Lehman Brothers in September forced the issue of counterparty credit risk to the top of the agenda, causing scores of investors to recoil from other firms