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Lenders will price risks more accurately, with the most deserving firms finding funds and savers earning decent returns.
There just are not many other places they can hedge the price risks that arise in their commodity-based businesses.
But to wait until the booking is under way — or finished — before disclosing a full price risks irritating the customer.
If a dual or basket system were to be adapted, more investors would be forced to hedge against currency risks, as well as oil price risks.
"Although the macroeconomic backdrop still remains uncertain, particularly in Europe," the bank said, "we believe that the price risks are now shifting more to the upside".
Sometimes they trust not at all in market forces: for example, they actually discouraged utilities from hedging their price risks by purchasing derivatives.
Similar(32)
Price risk, he said, "is indexing's fatal flaw".
Investors who want higher returns must bear price risk.
Enron's assets and liabilities in the category labeled "price risk management" dropped sharply.
The big credit-rating agencies had failed, comprehensively, to price risk accurately.
Capital markets only operate efficiently if they can accurately price risk and management quality.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com