Commodity Margins Compress

Commodity Margins Compress

Commodity finance emerged from Argentina's mucky restructuring as a star business, fueling a high margin bonanza for foreign bankers. Major exporters from the country's traditional agriculture sector, like soybean producers, had plenty to sell abroad in dollars when the peso tanked. But many local banks withdrew credit lines, leaving them unable to cover export costs. Much to the delight of foreign export finance specialists, in the wake of the crisis their business was "flowing like wine," recalls a banker at a large European bank that got busy helping Argentine agricultural goods out of the country. The commodity export finance market is getting crowded.The situation has since c

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