Even discount retailers now deploy sophisticated derivative hedging as routine corporate practice.

Evidence

[Walmart] uses derivative financial instruments for hedging and non-trading purposes to manage its exposure to changes in interest and currency exchange rates, as well as to maintain an appropriate mix of fixedand floating-rate debt. Use of derivative financial instruments in hedging programs subjects the Company to certain risks, such as market and credit risks. … Credit risk related to derivatives represents the possibility that the counterparty will not fulfill the terms of the contract. — Max Haiven, Cultures of Financialization, 275

Categorization

• DEFINE: A plain-language explanation of market risk vs. credit risk in a hedging context — useful reference for distinguishing the two risk categories.
• XREF: connects to: Financial derivatives now substitute for physical and organizational means of managing corporate risk — Donald MacKenzie, An Engine, Not a Camera: How Financial…, 1178

Broader Connections

• Financial derivatives now substitute for physical and organizational means of managing corporate risk #expands (0.80) — Donald MacKenzie, An Engine, Not a Camera, 1178