The approach helped reduce Paramount's exposure to the volatility of the film business, and many studios subsequently emulated the strategy.
"All of the banks affected by today's actions have significant exposure to the volatility and risk of outsized losses inherent to capital markets activities," Moody's global banking managing director, Greg Bauer, said in a statement.
The acquisition would catapult S.A.B., the maker of Castle Lager, to the world's second-largest brewer, behind the Anheuser-Busch Companies, from its current position as No. 4. It would also allow S.A.B. to reduce its exposure to the volatility of the rand, the South African currency, which has experienced a steep decline in value recently.
This reduces exposure to inherent volatility of technology.
Buy at least five issues to minimize your exposure to price volatility and defaults.
The company is less dependent on copper than some of its competitors and therefore has had less exposure to the volatility in the metal's price in recent weeks, driven by fears that reduced consumer confidence in the wake of the credit crisis would hit demand.
As a consequence, even if lower corn prices might be advantageous to the growing urban populations in developing countries, who will have to pay less for their food, it will increase dependence of those countries on foreign imports and their exposure to market volatility.
Despite the fund's heavy exposure to those volatile sectors, its beta -- or volatility relative to the market -- is roughly equal to that of its benchmark, the Morgan Stanley Capital International World Index.
Airline CFOs, for example, typically use call options as part of their fuel-hedging strategies, dampening their exposure to oil-price volatility and lending certainty to their cost projections.
The coalition, established in 2010, is a powerful alliance of business associations and major corporations that seeks to protect their use of derivatives to minimize their exposure to risk and volatility.
