Companies increase commodities hedging
Companies around the world are now hedging 55% of their commodity exposure as a result of increased volatility and the global financial crisis, according to a survey by Connecticut-based research consultancy Greenwich Associates.
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 Greenwich Associates' 2009 Global Commodities Research Study.
"This trend was largely driven by refiners and producers of energy commodities, which together increased the share of their exposures hedged with financial products by 20%," Greenwich Associates said in a press release.
According to the
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