Welcome to Commodity Merchant Trading and Shipping Advisory Services, the international commodity merchant trading consultancy dedicated to help a clientele comprised of traders/merchants and banks to achieve world-class competency in commodity trading and trade finance. … Continue reading
It’s the Salomon Brothers of the commodities. They are J Aron + Goldman Sachs but perhaps with better risk management What’s Mercuria ? It’s Dunand, and Jaeggi and a business regulated to the quarter turns. Since its beginnings in 2004, Mercuria Trading S.A. has demonstrated an unrelentless capacity to execute complex trades, earning the banks/financing parties trust.
At the beginning of 2017, Noble’s position consisted of back-to-back losses, nothing less than $2B equity in non-cash mark-to-market unrealised gains and a book that was irreversibly damaged. Continue reading
Various papers have tried to explain the forward curves and spot volatility across the freight market. This article examines the reasons why Traders/Charterers Owners are not inclined to use the swap to mitigate the freight risk. We observe the impediments … Continue reading
Ivan Glasenberg joined the company just as Mark Rich fled the United States to Switzerland and renounced to its American citizenship.
Glasenberg first post was coal trader in Johannesburg.
At that time, the company’s core business was supplying oil to the apartheid regime of South Africa before and during the UN embargo.
In 1991 Ivan Glasenberg had caught Mark Rich attention and was brought to Switzerland.
Over the next decade Ivan Glasenberg became a trusted member of the inner circle.
The pardon of Marc Rich by the U.S Government, did not include the company.
In 1994 Marc Rich stepped down as a CEO and sold its 51 percent shares to the management.
The company was renamed Glencore.
How the financing/banks should approach the setting of their risk tolerance with a trader ? Continue reading
AGREEMENT with the Minister of Interior, 1 rue de Jargonnant Geneva https://jacquessimon506.files.wordpress.com/2018/02/trafigura-s-jacques.pdf One day Trafigura will get the banks and institutional coverage. These(s) will not go unnoticed as the group funding pivots to bond issuances. In the immediate term, my … Continue reading
As commodity traders business started to depart from ‘pure commodity trading desks built on perceived arbitrages to the pre-export financing, lending project financing, structured commodity solutions became de-facto doctrine of commodity trading, the ‘new-cool’.
With the new doctrine, came new risks. Continue reading
Each trading company has a business model of its own, different strategies come with varying degrees of success depending on market conditions but it’s the same equation: carrying-costs are the predicament of the commodity traders. Their survival is related to their ability to withstand frequent small gains and few big losses. Whoever has the most money at the “end” of this gambit is the winner.
The bankers, central to this universe, have no pieces on the chessboard- it’s traders who are in charge of the bank’s money. Continue reading
The commodity trader is bartering in a structured manner with a risk-profile essentially similar to a commodity prepay arrangement but the structure is driven by additional requirements and a different motivations from the banks financing the trade.
PDVSA State-Owned company has insufficiently strong credit for the banks, is politically at-risk and presents a major payment risk for every counterparties but one commodity trader. Trafigura (the trader with a motto ‘Maximise the Profits- Mutualize Risks’ )by necessity, would like to resuscitate the old barter trade in a structured way. A fantasy more than a serious calculus ? Investigation into this interplay between banking and physical trading. Continue reading