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Banks grab distressed UK assets
Six European banks intend to buy around 10GW of distressed UK power assets usingfinancial instruments. But their main rival, MMC, says hard cash is needed towin the UK market. By James Ockenden
Brokers look toshow their worth
Brokers are increasingly looking to provide energy price data. The choice may be wider, but are energy firms getting the credible data and analysis they need for intelligent price forecasts? Joe Marsh reports
The future of freight
The Baltic Exchange has recently shelved plans to offer freight derivatives,yet rising freight rates should aid the development of the embryonic forwardfreight agreement market. By Paul Lyon
Jean-Marc Bonnefous
Jean-Marc Bonnefous, BNP Paribas’ global head of commodity derivatives, says his unique division will keep it ahead of the game. By Paul Lyon
Protection treaty
Matthew Saunders , of law firm DLA, introduces the bilateral investment treaty which, though often overlooked, can be an effective method of affording legal protection for energy investments and minimising energy project risk
Modernisingprice reporting
Recent investigations have seriously affected the voluntary reporting of energy price data. Now, the market is ready to move on. Edison Electric Institute’s Richard McMahon gives his organisation’s views on the future operation of indexes
In pursuit of the eurobarrel
The markets say they do not want oil prices in euros. But denominating internationalcrude prices in euros is a political ambition the European Union seems determinedto pursue – starting with Russia. MariaKielmas reports
Capital calculations
The latest Committee of Chief Risk Officers white paper offers capital adequacy guidelines for energy merchants. But why should energy firms perform these calculations? Glyn Holton asks whether the CCRO has missed the point
Cash upfront
Memphis Light, Gas & Water is readying a landmark bond sale to fund a prepay electricity contract with the Tennessee Valley Authority. But some fear the deal could set a dangerous precedent. By Paul Lyon
Dissecting risk
Abstract: Naveen Andrews and MarkThomas explore a method of calculating VAR in measuring component market risk under conditions of imperfect correlation across positions within a portfolio. It is easily adapted to existing Monte Carlo systems,…
Flexible bonds
A depressed power market means major firms face an uphill struggle to refinancetheir debt. But a commodity hedge has given US energy giant Calpine Corp considerableflexibility in its $800 million bond issue. By James Ockenden
Energy bill enters into Senate
The US energy bill was presented to Congress in late November. But while it contains a wide range of provisions, ranging from tax incentives to improvements in reliability, critics say the bill still needs work. Joe Marsh reports
US Senate rejects energyderivatives legislation
Energy traders applauded the Senate’s decision in November to veto proposed legislation that would place stricter controls on derivatives trading. By Paul Lyon
FirstEnergy to blame for US blackout, say reports
Utilities in Ohio – chiefly FirstEnergy – were at fault for the US blackout in August, conclude separate reports from a US-Canadian task force and Michigan regulators. But the midwest system operator does not escape blame. By Joe Marsh
TVA will go bust, say academics
US academics say that the Tennessee Valley Authority would be close to bankruptcy if it were not for the promise of a government bailout, reports Paul Lyon
Bound by the rules
In his last day in office, Governor Gray Davis announced the Californian energy crisis was over. Revelations from indicted traders, and the punishments doled out to them, will have a profound effect on how the market moves forward. By Catherine…
Winter of content
Some forecasters are warning of a volatile winter in Europe and the US, whichmeans fluctuating demand for fuel over the coming months. Weather derivativestraders are hopeful of an upturn in business. By Paul Lyon