http://tinyurl.com/5rlgtkPools of Foreign Wealth Move Into Commodities
By David Cho
Washington Post Staff Writer
Tuesday, August 12, 2008; D01
Sovereign wealth funds, the massive investment pools run by foreign governments, are now among the biggest speculators in the trading of oil and other vital goods like corn and cotton in the
United States, according to interviews with brokers who handle their investments at leading Wall Street banks, veteran traders and congressional investigators.
The index allows investors to enjoy the returns of a commodity investment without actually buying futures contracts on an exchange. For this reason, the extent of their activities may be known only to the swap dealers at investment banks such as Goldman Sachs , Lehman Brothers and Morgan Stanley, which handle such transactions.
