Summary
Companies around the world are hedging a growing proportion of their commodities exposures as they grapple with soaring levels of volatility and risk amid an historic economic crisis.
Analysis
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 the results of Greenwich Associates’ 2009 Global Commodities Research Study. This trend was driven by refiners and producers of energy commodities, which together increased the share of their exposures hedged with financial products by some 20%.
This author consults with leading institutions through GLG
Analyses are solely the work of the authors and have not been edited or endorsed by GLG.
