Goldman Sachs, Morgan Stanley lead in commodities

May 22, 2008

We noted recently that hedging commodities poses big risks for traditional hedgers, ag companies, airlines, energy companies and the like. Big farm corporation Bunge stands as a cautionary tale. There is indeed a fine line between hedgers and speculators at times. But for the Wall Street dealers, soaring commodity prices and the need for companies to hedge has created a nice revenue stream, notes the Globe and Mail. Goldman Sachs and Morgan Stanley lead the pack, each enjoying a more than 40 percent market share in OTC commodity derivatives (Greenwich Associates). Barclays Capital and JP Morgan also are major players. The most sophisticated hedgers: BP, Exxon Mobil, Lufthansa, Royal Dutch Shell and Southwest Airlines, the survey found.

For more:
- here's the Globe and Mail item