Unsurprisingly, increasing unpredictability is encouraging caution among risk managers at utilities, says Jayesh Sharma, head of hedging solutions for Europe, the Middle East and Africa at financial services firm Marex. “They are being a bit more defensive and flexible in how they’re approaching risk management, engaging in frequent re-hedging … and in shorter tenors than we’d have seen in the past, largely due to the greater difficulty of forecasting further down the curve.”
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