HC Insider Podcast on Spotify - Financial Markets industry
Category: Podcast

The Commodity Financing Crunch with Lewis Hart

Demand for commodity financing is skyrocketing as prices, volumes and margin calls are on the rise. However, after a decade of low demand, low returns and pressure from a variety of sources, the supply of liquidity is far more constrained. Many banks, who had prominent roles in commodity finance in the 2000s have pulled back entirely while newer entrants often lack the deep product expertise to provide the services needed. Now volatility, high prices and supply chain challenges have left traders and merchants scrambling to finance their positions and capture the opportunities presented. How much of a risk does this present to the commodity trading world? What will happen to the availability and cost of financing and how are companies responding? Will the response only add risk to the system? 

Guiding us through the tightening world of commodity finance and its ramifications is Lewis Hart, Managing Director at Brown Brothers Harriman where he leads the firm’s Commodities & Logistics and Corporate Banking businesses.