Fri, Nov 21, 2014
A A A
Welcome kbr175@gmail.com
RSS

Commodities Briefing - Categorized | Financial more

Is structured commodity finance a hidden bubble?

Posted on 28 March 2014

Commodity markets focus on bringing commodities from their place of origin to the centres of demand in the most efficient manner. Banks, trade houses, consumers and producers all aim to bring efficiency to this flow, but there is always room for improvement.
Structured finance, the activity of lending against inventory held as collateral, focuses on ameliorating and streamlining two aspects of the commodity business – cash flow and flow of goods. Structured finance has usually been the forte of large financial institutions, but recently commodities trading firms have entered this business. This has resulted in excess lending capacity, which has led to lower costs of capital for borrowers………………………………Full Article: Source


 Article link

This post was written by:

VRS - who has written 38089 posts on Opalesque Commodities Briefing.


Contact the author

Comments are closed.

banner
November 2014
S M T W T F S
« Oct    
 1
2345678
9101112131415
16171819202122
23242526272829
30