Nufarm gets rewarded for positive risk management move

Nufarm recently sold off part of a subsidiary in Brazil for A$1.2 billion. The Australian agricultural chemicals company had been under pressure to reduce its debt - it was leveraged at three times its earnings. The disposal would cut its leverage to 0.7x.

Investors rewarded Nufarm's move to improve its balance sheet by buying into its shares, sending its stock price up, reversing its status from being a heavily-shorted stock on the ASX.

RIABU's Simon Littlewood and Mark Laudi discuss what Nufarm's move means ahead of recession worries and why companies would do well to look at risk management in these times.