
Systems at Risk Episode 3 | Craig Pirrong, Professor of Finance and Director, Global Energy Management Institute, Bauer College of Business University of Houston
SmarterMarkets™
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Commodity Trading Firms Face Higher Demands for Cash Margins Against Their Hedges
Commodity trading firms, as you said earlier, are facing much higher demands for cash margins against their hedges. So it indefinitely is going to impact cost of intermediating physical commodities. And so that's going to basically drive a wedge between the prices that consumers an rec pay and producers receive.
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