Variations in prices offer profitable and strategic opportunities

ON SPECIALIST MARKETS

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JIGNA GIBB, director of Commodity Investor Structuring at Barclays Capital on Specialist Markets

Throughout 2010 there has been a commingling between strong commodity fundamentals and weak investor sentiment. The dampening of sentiment has been primarily driven by macroeconomic pessimism influenced by European debt crisis, tightening financial conditions in emerging markets and potential changes in US banking regulations. However, after a slow start to the year, the notional invested in commodities soared to $292bn gathering pace as investors’ risk appetite returned and commodity prices were supported by strong macro fundamentals. As a leading global economic indicator, Freight a...

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