The WTI May 2020 futures contract hit the headlines by trading at minus 40 USD yesterday. Structured investment products were the driving force as financial investors are not interested in holding the physical commodity. They realized too late that nobody else was willing to take delivery as U.S. storage facilities are running at full capacity. The resulting turbulences have real effects on the economy and jobs. Therefore, the raison d'etre for structured products on selected commodities is more than questionable.
One of the critical issues with structured products on commodities is that they do not