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Hedging weather exposure
Volumetric weather risk is usually levered by the commodity price, resulting in cross-commodity exposure known as a quanto. Hedging such exposure with quanto instruments is costly. Victor Dvortsov suggests a simple strategy that allows efficient hedging…
March 2006 - Interconnector - UK left in the cold
As UK gas prices soared at the start of the year, market watchers struggled to explain why cheaper European gas didn't flood into the UK. But as the UK becomes a net importer of gas, these sorts of market inefficiencies will become more prominent, writes…
Coping with setbacks
Most risk managers and employees in energy companies are familiar with the concepts of market risk and credit risk, but operational risk is receiving more attention in corporate boardrooms these days, writes Sandy Fielden
March 2006 - EFET Survey - Could do better
Gas transmission access systems across Europe must be improved significantly before efficient trading can take place, say gas traders in a recent poll conducted by the European Federation of Energy Traders
Nymex's death knell to floor?
The New York Mercantile Exchange's decision to introduce side-by-side electronic and open-outcry trading heralds the beginning of the end for its floor trade, many market participants believe
In defence of Gazprom
The Russian gas giant's recent price dispute with Ukraine has not given it the best start to the year, but the cat calls of political bullying are not deterring Gazprom's European customers, writes Oliver Holtaway
Introduction - New frontiers in credit
Rising energy prices have thrown the issue of credit into stark relief, and credit lines are being used up increasingly quickly. How should credit managers react?