UBS launches freight market investor index
The index will track the price of forward freight agreement (FFAs) for three different dry bulk carrier types, which each holds a different weighting: 50 % is allocated to the Panamax time charter index, 40% to Capesize and 10% to Supramax.
The dry (cargo) freight derivatives market has exploded in value in the past five years, going from $10 billion in value to a projected $150 billion in 2008, according to Ilija Murisic, executive director, hybrid derivatives trading at UBS.
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