Commodity Risk Management
Forward hedging exposure to natural gas, fuel or power price volatilities
When a client needs to ensure the fundamental viability of its financial operation, it must protect against unsustainable cost increases. Hedging price fluctuations of commodities consumed during the business process should form an integral part of any risk management strategy. Commodity Risk Management products available through the LFP entities give clients the ability to forward hedge their exposure to natural gas, fuel or power price volatilities. Commodity hedging helps clients ensure the predictability of operating costs and budget commitments, creating more efficient forecasting. Our commodity risk management approach encompasses an understanding of how synthetic hedge products can be more price-effective than forward hedging in the physical markets.
Commodity Risk Management Services:
- Natural Gas, Fuel and Power Forward Contracts
- Natural Gas, Fuel and Power Swap Structures
- Natural Gas, Fuel and Power Cap, Floor and Collar Structures
Structured Note Investment Products »
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