transparency or illiquidity. However, several of the important announcements concerning the international swap programs …

in a standard framework in which uninformed traders with hedging needs interact with risk-averse informed traders in … hedging and speculative demands: risk-averse arbitrageurs can hedge in the new market to lower the risk of speculative … traders with pure hedging motives in that market to withdraw, so reducing liquidity in the old market. The general point …

a fund’s portfolio through additional leverage and hedging. First-best spending should be a share of total wealth, and … any unhedged volatility must be managed by precautionary savings. If oil prices are pro-cyclical, oil should be extracted …

futures contracts. Their hedging demand is met by financial intermediaries who act as speculators, but are constrained in risk …-taking. Increases (decreases) in producers’ hedging demand (the risk-bearing capacity of speculators) increase the costs of hedging … 1980-2006, we show that producers’ hedging demand - proxied by their default risk - forecasts spot prices, futures prices …

This paper examines and compares the effectiveness of hedging and buffer-stock strategies for stabilizing the revenues …