Revenue put options gain popularity in US power markets
Morgan Stanley seen as top dealer in emerging risk management niche
The past few years have been tough on US power generators. As the shale boom has unleashed plentiful supplies of cheap natural gas, and improvements in energy efficiency have caused electricity demand to flatline, power prices in many parts of the country have been stuck in a multi-year slump.
Against that backdrop, a new type of bespoke hedging tool has grown increasingly popular among those investors willing to take a long view and construct new power plants. Called the revenue put option, it
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