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Liczba wyników
2011 | 5 | nr 4 | 4--16
Tytuł artykułu

Financialization of commodities

Treść / Zawartość
Warianty tytułu
Języki publikacji
EN
Abstrakty
EN
The basic theory of price formation tells us how the price of a particular asset will change based on the adjustment to its supply and demand. However, values of assets are also determined by other business fundamentals, company's and world events, human psychology, and investors' belief about the possible future profit. In recent history that lead to an increase of individual and institutional investors' interest in allocating their resources in commodity markets. With a large inflow of capital commodities' prices started to rise making them attractive components to effective investment portfolios. The presented paper addresses the issue of so called commodities 'financialization' process. It looks at the main factors standing behind commodities' price movements and to what extent financial market participants contributed to commodities price volatility in recent years. Based on the data examined it distinguishes the involvement of both commercial and non-commercial traders in short and long term periods of time. As well as explaining the impact of growing investors' interest in commodity markets it defines other market forces - like currency appreciations and emerging markets - as being part of increased volatility in raw and soft commodity markets. Along with market examination the paper focuses on possible future outcomes in attempts to regulate commodities derivatives markets and potential effects of those efforts. (original abstract)
Rocznik
Tom
5
Numer
Strony
4--16
Opis fizyczny
Twórcy
  • Excelian Limited, United Kingdom
Bibliografia
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  • 4. Casey T. (2011) Financialization and the Future of the Neo-liberal Growth Model, Political Studies Association Conference Proceedings.
  • 5. Central Bank of Argentina, (2009). Financialization of Commodity Markets: Nonlinear Consequences from Heterogeneous Agent Behaviour, Working Paper 2009/44.
  • 6. Chandrasekhar, C.P., Ghosh, J., (2010). Are We Heading for Another Global Primary Commodity Price Surge? International Development Economics Associates.
  • 7. Commodity Futures Trading Commission, (2008). Staff Report on Commodity Swap Dealers & Index Traders with Commission Recommendations, 2008.
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  • 10. Dunsby, A., Eckstein, J., Gaspar, J., (2008). Commodity investing: maximizing returns through fundamental analysis, Wiley & Sons, Inc.
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  • 12. European Central Bank, (2008). External Environment Review: Speculative Activity in Oil Markets, July 2008.
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  • 22. International Swaps and Derivatives Association, (2009). Impact of Treasury's OTC Derivatives Legislation on Commodity Derivatives, October 2009.
  • 23. Irwin, S.H., Sanders, D.R., Merrin, R.P., (2009). Devil or Angel? The Role of Speculation in the Recent Commodity Price Boom (and Bust), The American Journal of Agricultural Economics, August 2009.
  • 24. Kevin S. (2011) Commodity And Financial Derivatives, Prentice Hall Of India.
  • 25. Kilian, L., (2009). Not all oil price shocks are alike: Disentangling demand and supply shocks in the crude oil market, American Economic Review, 99 (3), June 2009.
  • 26. Knoepfel I. (2011) Responsible investment in commodities, onValues Investment Strategies and Research.
  • 27. Kyle, A., Xiong, W., (2001). Contagion as a wealth effect, Journal of Finance, 56 (4).
  • 28. Masters, M.W., White, A.K. (2008) The Accidental Hunt Brothers: How Institutional Investors are Driving up Food and Energy Prices.
  • 29. Mittal, A., (2009) The 2008 Food Price Crisis: Rethinking Food Security Policies, G-24 Discussion Paper Series.
  • 30. Tang, K., Xiong, W., (2011). Index Investment and Financialization of Commodities, Princeton University.
  • 31. The Economist Magazine, Crisis prevention, vol. 09/2011.
  • 32. The Times of India (2011). Strong dollar pummels commodities, May 7, 2011.
  • 33. Trostle, R., (2008). Global Agricultural Supply and Demand: Factors Contributing to the Recent Increase in Food Prices, Economic Research Service Report from United States Department of Agriculture.
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  • 35. U.S. Commodity Futures Trading Commission, (2011). Available at: http://www.cftc.gov/index.htm.
  • 36. Vito, B., (2011). Revisiting the inadvertent investment company, Fordham Journal of Corporate & Financial Law.
  • 37. Wholesale Market Brokers' Association, London Energy Brokers' Association, (2011). Response to European Commission on MiFID2 Consultation.
Typ dokumentu
Bibliografia
Identyfikatory
Identyfikator YADDA
bwmeta1.element.ekon-element-000171259399

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