PPRuNe Forums - View Single Post - Hedging fuel prices - major Oil Hedge company goes bankrupt
Old 23rd Jul 2008, 11:24
  #4 (permalink)  
Rainboe
Warning Toxic!
Disgusted of Tunbridge
 
Join Date: Jan 2005
Location: Hampshire, UK
Posts: 4,011
Likes: 0
Received 0 Likes on 0 Posts
I thought companies hedged direct with oil companies, not with faceless suites of offices in a Texas skyscraper that will promptly go 'into administration' when the punt they were taking goes bad! Oh dear! So they are on a one way bet? Take the profit if the hedge goes well, or roll over if it goes bad- either way they don't pay out! Kinda makes the whole hedging thing look a bit silly, doesn't it?
Rainboe is offline