Looks like Lehman could not get out of a uranium trade and now they are long physical uranium. They accepted delivery and now have a bunch of yellowcake. I guess now they are going to wait for the commodity markets to rebound before they sell the stuff. Nothing like trading commodities in an illiquid, heavily regulated market...
It raises so many questions: Have they talked to Iran or North Korea yet? What does storage cost? What is their cost of carry? When do they expect uranium demand to rebound? Who trades spot market yellowcake?
About Me
- AAR
- Calgary, Canada
- I work in the energy industry doing quanty-type stuff. I think about economics, smoke cigars, read about finance and science, ride bikes and follow Formula 1.
I give you one mirrion dorrars for that Uranium!
ReplyDelete-Kim