Banks-Black Boxes Secular Value Destruction in the Commodity Trade and Finance.

Secular value destruction in the commodity trade and finance world is just a normal reflection of a bank board non-acknowledgment or its inability to assess the true cost of dancing with the “Black-boxes”. 
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Banks- Goldman Sachs FICC Short Gamma RE-LOADS ENERGY TRADING Part II

Sheds a light on a model that doesn’t involve the old school houses and trade finance but gives an ability to trade big VaR when good opportunity comes up. Leveraging Goldman internal flow ( alternate the credit HY research, macro rates, economic team, China EM, DM, Houston FICC) views.

Makes you really think what is necessary and what is “fluff”. Continue reading

Food is perhaps the greatest trade imbalance of our lifetime.

Why must the Grain flow ?

Processing capacity and food supply offset each other but in net terms do not perfectly match.

Purely food “space trades”, can also favor the appearance of quite unusual trades between continents. Continue reading