The effectiveness and usefulness for commodity-dependent countries of new tools in commodity markets: risk management and collateralized finance

Abstract

This paper describes the experiences of developing country enterprises, farmers and governments with commodity price risk management and various forms of structured finance. It explores the constraints that these entities face in using modern financial markets, including counterparty and sovereign risk obstacles, and problems in their legal and regulatory framework. Various schemes to overcome such obstacles are examined.commodity futures market, futures, options, risk management, structured finance, warehouse receipts, securitization