Tue, Sep 30, 2014
A A A
Welcome kbr175@gmail.com
RSS

Commodities Briefing - Categorized | Financial, Trading more

Financial intermediation and shadow banking through commodities

Posted on 29 April 2014

Commodity trading firms are not systemically risky because they do not engage in the sort of maturity transformation that banks do. They also tend mostly to operate on a hedged basis, via “basis trade” exposure.
Short-term assets meanwhile are funded with short-term debt while long-term assets are funded with long-term debt, meaning the institutions are not heavily leveraged at all, though balance sheets are exposed to liquidity or rollover risk………………………………………..Full Article: Source


 Article link

This post was written by:

VRS - who has written 37188 posts on Opalesque Commodities Briefing.


Contact the author

Comments are closed.

banner
September 2014
S M T W T F S
« Aug    
 123456
78910111213
14151617181920
21222324252627
282930