Managing Risk Management

By Mike Reardon, Vice President, IMAREX

With the unprecedented collapse of dry bulk rates over the past few months, we have seen increased inquiry from those looking to maximize their risk management capabilities. The two most common lines of questioning we have been receiving are centered on cleared trading and the use of options. We will address both of these concepts below in the FAQ format.

What has changed in the market that has caused people to review their risk management procedures? The simple, though unfortunate, answer is that dry bulk rates have plummeted. The extreme nature of the decline has created concern that some parties may not be able to pay what they owe. This counterparty concern doesn’t just apply to FFAs. It also applies to the

This is only an excerpt of Managing Risk Management

Content is restricted to subscribers. To continue reading please Log-In or view our subscription options.