Outlook for corporate hedging as banks pull back from energy markets

Will corporate hedgers suffer if more banks pull back from energy and commodities trading? Pauline McCallion examines the issue of dealer retrenchment from the market

A shrinking pool

The third quarter of 2008 marked a new high for energy prices and as oil broke the $147 a barrel mark, the interest of the financial community was piqued, causing an influx of investment into the energy and commodities sector. Corporate hedgers gained access to more, and better, trading partners as the benefits of hedging against price fluctuations became all too clear. However, the recent economic malaise, coupled with current efforts to tighten banking regulations have caused some financial

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