SEB’s commodities business area is now ready for business. That is the message coming from Mikael Nordström, head of the new unit. “We are just at the outset of our journey to become the leading commodities bank in the Nordics,” he says.
With the addition of commodities, SEB can now offer customers access across all the four main asset classes – equities, foreign exchange, interest rates and commodities. SEB’s commodities business covers energy, industrial metals, precious metals, and agriculture and has four key activity areas.
Working with companies
Despite the fact that many industrial companies often are exposed to several and large financial commodity risks, few are currently managing these risks with the same tools and accuracy as is the case for currencies and interest rates. SEB can help companies hedge their financial commodities’ risks, offer them analysis and provide them with tailor-made products and services.
"Together with SEB’s other business areas we see an exciting potential in serving our customers even better by also helping the them to manage their financial commodity risks,” says Nordström.
Working with investors
Commodities as an asset class can be an important part of any investors’ portfolio because it can diversify risk and create good returns. SEB’s commodities team is building up capacity in this area, and can currently offer investment opportunities in commodities for institutions and private banking customers, and in the future for retail clients.
Research
The strong research component will empower the commodities business within the bank while supporting other business areas with top-notch research and analysis. In early September, SEB’s commodities team launched a new flagship publication called Commodities Monthly. In the future SEB plans to also issue a daily morning recap. The bank’s research and analysis covers energy, industrial metals, agriculture and precious metals.
Trading desk
To support the customers and provide high customer value, the trading desk offers support for tailor-made products for institutional as well as industrial customers. By working actively in the markets with commodity risk the team can transform standardised market products into products that fit customer needs in size, risk level, currency and delivery period.