Calculating Counterparty Liquidity in an Inflationary Price Environment

Insufficient liquidity is a source of many counterparty failures so understanding a company’s sources and uses of liquidity is critical and never more so than in an inflationary environment with higher price volatility. Higher prices for commodity feedstock/supply and potential hedge margin calls can strain liquidity resources. Alternatively, higher revenues from higher commodity sales prices can be a source of incremental cash flow. This session will explore where to find this information in financial statements and other public sources and how to extrapolate the analysis into the future.

Learning Objective: Understand how to create a liquidity source and use analysis with price sensitivity scenarios.

CPE – 1HR