With $19 Billion In Derivative Liabilties, Some Observations On Glencore's "Counterparty Risk"

"Now that after long last the market has turned its attention not only to Glencore's mining operations, which as we have repeated said are a secondary aspect to the company's business model, the key being its trading operations which transact in billions of commodities every single day, and the stocks just plunged to fresh intraday lows down a historic 30%, here is a quick pointer at what traders should be looking at next: the company's own disclosure on counterparty risk from its most recent annual report.

But before we get into it, here is a reminder of Glencore's most recent disclosed financial situation: $30Bn net debt on $6.5bn in EBITDA. EBITDA, which as a reminder, drops by $1.2BN for every 10% drop in copper prices according to the company itself..."

at http://www.zerohedge.com/news/2015-09-28/19-billion-derivative-liabiltiies-some-observations-glencores-counterparty-risk