This paper uses a dynamic optimization model to estimate the welfare gains of hedging against commodity price risk for … through two channels. First, by reducing export income volatility and allowing for a smoother consumption path. Second, by …

Intro -- Contents -- I. INTRODUCTION -- II. METHODOLOGY AND DATA -- III. VOLATILITY DYNAMICS IN CENTRAL AND EASTERN …

-balance-sheet activities. This paper provides measures of leverage implicit in derivative contracts by decomposing the contracts into cash …

on a specific commodity price. By extracting commodity price risk out of the bond, such an instrument insulates the bond … default risk from commodity price movements, allowing it to be marketed at a lower credit spread. The product is also designed …

Commodities are back following a stellar run of price performance, attracting financial investor attention. What are …

on a specific commodity price. By extracting commodity price risk out of the bond, such an instrument insulates the bond … default risk from commodity price movements, allowing it to be marketed at a lower credit spread. The product …

Many governments are heavily exposed to oil price risk, especially those dependent on revenue derived from oil … production. For these governments, dealing with large price movements is difficult and costly. Traditional approaches, such as … decade, and their range and depth could allow even substantial producers, and consumers, to hedge their oil price risk. Yet …