Goldman Sachs, Morgan Stanley lead in commodities

Thu, 22 May 2008 06:59:58 -0400

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

hedging companies

Goldman Sachs, Morgan Stanley lead in commodities