Hedging against commodity risk

Read time: 7 mins        Added date: 04/01/2024

Companies are facing a dramatic rise in commodity risk due to volatile geopolitical circumstances, leading to a greater need for risk management support. In a recent interview with The Banker, Anders Nilsson discusses rising commodity risks, how corporations can hedge against them and why treasury departments must now be on the alert.

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“If you’re in a low margin product set, you have to be competitive. If suddenly your bills go up dramatically in the commodities space, it could be simple things like power, heating, or the diesel exposure you have – suddenly that might have a big impact on your overall performance as a company.” 

Anders Nilsson, Head of Large Corporates FX Sales and Commodities

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