THE „NEGATIVE PRICING“ PROBLEM Cover Image

ПРОБЛЕМЪТ „ОТРИЦАТЕЛНИ ЦЕНИ“
THE „NEGATIVE PRICING“ PROBLEM

Author(s): Krasimira Naydenova
Subject(s): Economy, Financial Markets
Published by: Икономически университет - Варна
Keywords: negative prices; negative interest rates; cost of capital; commodity exchanges
Summary/Abstract: Negative prices are a problem in commodity markets. They disrupt sales expectations, hence cash flow forecasting and asset and company valuations, also have a negative impact on the pricing mecha-nism of capital. Questions are also raised about risk assessment. Combined with negative interest rates and the effects on fund owners, corporate financing is problematic.