tag:blogger.com,1999:blog-4988575875388913383.post7392844252303944344..comments2023-10-30T08:51:03.769-04:00Comments on Mind & Market: Portfolio Hedgingfordmwhttp://www.blogger.com/profile/11971108560921372854noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-4988575875388913383.post-8470724516946540542013-12-09T13:09:25.701-05:002013-12-09T13:09:25.701-05:00We store significant amount of commodities, for ex...We store significant amount of commodities, for example, silver, on behalf of customers we operate vaults in New York City, Singapore and in London. And often when customers have that metal stored in our facilities, they hedge it on a forward basis through JPMorgan who in turn hedges itself in the commodity markets. If you see only the hedges and our activity in the futures market, but you aren't aware of the underlying client position that we're hedging, that would suggest inaccurately that we're running a large directional position. In fact that's not the case at all.<br />We have offsetting positions. We have no stake in whether prices rise or decline. Rather we're running a flat or relatively flat matched book.<br />What is commonly out there is that JPMorgan is manipulating the metals market. It's not part of our business model. It would be wrong and we don't do it.<br /> ~Blythe Mastersdgeorge12358https://www.blogger.com/profile/09065054826503451247noreply@blogger.com