Commodity hedging's PR dilemma
A poor reflection
The way that hedging is portrayed in the media is a source of irritation for many professionals in risk management. All too often, journalists zero in on blockbuster hedging losses and portray any use of derivatives as dangerous speculation, even when they are legitimately being used to hedge companies’ input costs. In financial circles and among those who work in energy and commodities, hedging may be an accepted business practice, but for the general public – as well as many journalists and
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