Hunt: Liquid Risks

Published 24 Jun 2013
Reference 5994
Industry Capital Markets
Region North America
Summary

The case describes the near-collapse of a commodities market in 1979, as two investors, the Hunt brothers, tried to corner the silver market. It discusses how key players in the financial markets dealt with the potential crisis and the risks involved.

Teaching objectives

To discuss market failure and liquidity risks, risk management, crisis management, financial markets, hedging via a well-known major event that happened in the late 1970s, which offers lessons that are applicable today. It thus provides a historical perspective on fundamental issues regarding markets and risk management.

Keywords
  • Risk Management
  • Liquidity Risk
  • Markets
  • Crisis Management
  • Finance
  • Commodities
  • Financial Markets
  • Financial Crisis
  • Q41213