The Risk in Price Fluctation...

The Risk in Price Fluctation...

Executives understand volatile commodity prices can affect the value of their companies’ assets and liabilities denominated in foreign currencies. Not many, however, realize that commodity prices can seriously impact on operating profit.  Traditionally, this risk is managed via Hedging on the Commodity Exchanges.
CommodityCap™ offers the only alternative to the traditional Commodity Hedging markets.

About CommodityCap

Managing Your Company's Exposure

CommodityCap™ is an insurance product that caps the buy price of a commodity asset over a fixed term, offering a potential payout to the client at the end of the contract term. 
In the context of a traditional Hedge, the buyer is presented with a risk should the market price move below the swap price, CommodityCap™ is an insurance policy which removes this risk and retains the benefit to the buyer should the market move above the swap price.
CommodityCap™ is a new concept in the insurance market and the insurance policy is written by the world’s largest Insurer, Allianz SE.