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Risk management

Vultures in Congo

Energy companies have long accepted a degree of country risk when investing in developing nations. But oil and gas companies now face a new threat to their international investments - and its origins lie closer to home. Andrew Derman, Andrew Melsheimer…

Kick-start for coal futures

Ice Futures and the European Energy Exchange have gone head-to-head in the latest attempt to kick-start coal derivatives trading. Oliver Holtaway investigates

Delta hedging the load-serving deal

In this article Andrew Klingler takes a closer look at the residual risk when a load-serving contract is hedged with forwards. The residual risk components are described quantitatively and a formula for the minimum variance hedge is outlined

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