Baltic Exchange forms asset derivatives advisory group

The London-based Baltic Exchange has formed an independent advisory group to enhance the emerging market for ship vessel asset derivatives. The group consists of key users, derivative brokers and physical panellists and will act as an information gatherer and advisor to the marketplace.

The Baltic Ship Valuation Assessments (BaSVA) were launched in May 2003 by the Baltic Exchange and provide bi-monthly assessments for second hand values of VLCC, aframax, capesize and panamax vessels. Since its launch the value of a five year old second hand capesize vessel has almost doubled, the exchange said.

“Asset prices have traditionally been highly volatile, and this new product has huge potential as a tool for shipowners, traders, banks and the shipping and financial markets to

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