Articles by Risk Staff
Mark-to-market accounting revisited
New risk disclosure and valuation regulations are aiming to revive energy trading in the US, but cumbersome accounting rules may put companies off hedging altogether, finds Catherine Lacoursière
Prices stable in market turmoil
Given the major changes taking place in the energy trading sector at present – and in view of recent events – it is not surprising that prices are behaving very differently from those last year. Eric Fishhaut of GlobalView Software gives an appraisal
LNG: handling flexibility risk
Even though the euphoria about the global liquefied natural gas market has dissipated, experts still forecast significant long-term growth. But in a buyer’s market the supplier has to understand the new risks. Maria Kielmas reports
Looking to the long term
After years of public debate, the European Commission, energy companies and governments of gas-producing countries all seem to agree that long-term gas contracts are here to stay. So why is it still such a big issue, asks Maria Kielmas
Gas storage and power prices: inextricably linked
While much has been made of the effect of natural gas storage on gas prices, very little thought has been given to its impact on the price of electricity. John Hopper, president of Falcon Gas Storage Company, analyses the situation
Clearer waters for ratings
Despite a credit ratings crisis in the energy markets, the prognosis for natural gas companies looks stable, finds Shifa Rahman
How to gain from risk premia
Brett Humphreys examines historic data for the natural gas market and finds smart traders could make money from hidden risk premia
The rise of the money men
Wanted: company to trade power in the US. Strong credit, trading expertise and appetite for risk required. Only banks need apply? By Kevin Foster
Clear in present danger
Energy companies are crying out for clearing solutions to reduce their counterparty credit risk. James Ockenden looks at new initiatives from London-based power exchange UKPX and German firm Clearing Bank Hannover
Out of the zone: nodal pricing takes hold
Congestion-constrained US electricity markets are likely to find relief with the arrival of a new pricing regime, reports Catherine Lacoursière
Balancing the books
Regulators are taking advantage of a lull in power project development in the US to close loopholes in financing rules, reports Catherine Lacoursière
Through the looking glass
Unlike oil and natural gas, electricity generally suffers poor price transparency. Rachel Jacobson of FAME Information Services looks at power price discovery mechanisms in the US
Managing risk under SMD
Scott Greene, Mark Niehaus and Pankaj Sahay examine the impact of Ferc’s proposed standard market design on power risk management
Estimating oil price volatility: a Garch model
Nikolai Sidorenko, Michael Baron and Michael Rosenberg present a general framework for modelling energy price volatility. These models explain the volatility persistence and clustering present in many commodity prices. In addition, they can incorporate…
