Investors tracking maturity-enhanced commodity indexes face liquidity risk

An analysis of commodity indexes shows there is some economic value from trading distant contracts beyond a fair compensation for taking liquidity risk.


There has been a “titanic wave of speculative money that has flowed into the commodities futures markets and driven up prices dramatically,” according to A White in the Capital Hill Hearing Testimony (July 10, 2008).

While the responsibility of long-only commodity indexers for the 2006-08 unprecedented rise in commodity prices is still open to debate, a general view is that commodity index trading prevailed more in 2008 than ever before.

Over the years, the case for commodity investing had become

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to View our subscription options

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here