While US hedge fund Citadel is expecting a tighter credit environment following the latest banking crisis, the firm’s head of commodities, Sebastian Barrack, is predicting limited impact on global commodities, according to a report by Reuters.
While US hedge fund Citadel is expecting a tighter credit environment following the latest banking crisis, the firm’s head of commodities, Sebastian Barrack, is predicting limited impact on global commodities, according to a report by Reuters.
“The immediate response will be a tightening of regulations and higher capital ratios, which will reduce the velocity of lending,” Barrack told Reuters on the sidelines of Financial Times Global Commodities Summit. “The risk is not systemic at this point. A lot of lending in commodities is collateralised so there won’t be a major impact.”
Banking stocks and bonds fell sharply on Monday while oil hit 15-month lows as the implications of UBS Group’s state-backed takeover of Credit Suisse rattled investors.
