Risk management
The swap terminator
Multilateral swap cancellations look set to become commonplace in the energy sector, thanks to a service from TriOptima, which has just terminated its first round of oil swaps for six firms. Joe Marsh reports
OpenLink may launch web-based version of Endur
OpenLink may launch a web-based version of Endur, its energy trading and risk management system, according to Matt Frye, Houston-based managing director of the software company.
Correlation: the horror!
The murky world of correlation, with its many pitfalls, represents a black hole in the minds of some energy market professionals. But, says Neil Palmer , you needn’t be afraid of the dark
Smoke without fire
The market for US financial coal swaps may be starting to show a little potential, but some major obstacles still remain before it catches alight – not least a widely accepted price index. By Joe Marsh
TriOptima trims six companies' oil swap portfolios
TriOptima, a Swedish company dedicated to reducing over-the-counter swap portfolios, has expanded its service into energy. The company has terminated its first group of multilateral OTC oil derivative swaps, with six companies eliminating unnecessary…
Risk Management Inc signs four utility clients
Risk Management Inc (RMI), a Chicago-based energy consultancy and brokerage, has signed up four new utility customers for its energy risk management and hedging services. The City of Glendale Water & Power and Pasadena Water & Power, both in California,…
Double exposure
Continuing our series on applications of Monte Carlo simulation to applied problems in energy risk management, Les Clewlow , Chris Strickland , Oleg Zakharov, and Scott Browne look at potential future exposure and the analogous measure of expected credit…
Caught short
Given the difficulty China Aviation Oil is having closing its remaining illiquid positions, its derivative trading losses may be greater than first thought. James Ockenden and Stella Farrington report
Sovereign solutions
As we saw last month, most governments prefer stabilisation funds over hedging to protect against oil price risks. But multilateral institutions such as the World Bank advise otherwise. By Maria Kielmas
Pay as you go
It is going to be a hard day at the office for Joe Risk Manager. The risk management committee might welcome his new risk charge system, but how would the traders take it? By Brett Humphreys and David Shimko
Fitch to buy Algorithmics
Fitch Group, parent of credit rating agency Fitch Ratings, is to acquire New York-based risk management software provider Algorithmics. The purchase, valued at $175 million, is expected to close in January, said Fitch today.
China Aviation Oil ceases oil derivatives trading
China Aviation Oil (Singapore) Corp has ceased all oil derivative trading activities after announcing a $550 million trading loss and seeking court protection from creditors last week, the company said late Wednesday.
China Aviation Oil chief arrested
Chen Jiulin, the suspended chief executive of China Aviation Oil, has been arrested on his return to Singapore early Wednesday as investigations begin into the company’s huge trading losses.
The famous fifty
To celebrate Energy Risk’s 10th birthday, we have created the Energy Risk Hall of Fame: a group of individuals whose commitment and contribution to energy markets makes them a foundation of this business. Introduced by James Ockenden
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Ending the acrimony
Most utilities support hedging to mitigate price volatility, but are not sure how to communicate the benefits of hedging to their customers. Tim Simard of RiskAdvisory offers suggestions for improving the rate-hearing process
Getting physical
Asset-backed trading strategies usually employ a combination of physicalpositions, which are subject to physical risk; and financial hedgingintruments, which are not. Here, Steve Leppard shows how value-at-risk,applied to this combined risk scenario, can…
Volatility conspiracy
The concept of volatility is universally used by quantitative analysts. But is it a concrete idea or a false friend? And does it even exist? Energy quant Neil Palmer takes a look at its mysteries
Energy traders urged to pre-register for risk poll
Energy traders wishing to take part in Energy Risk/Risk’s 12th annual Commodity Rankings can now pre-register to vote to avoid missing important voter updates and deadlines in the magazines’ annual survey of the energy business.
BNP beefs up energy team
BNP Paribas has expanded its energy derivatives team in London with four significant hires.
Ten years at the top
A decade of commodity rankings has seen many players come and go – but as James Ockenden finds, the top two investment banks, Morgan Stanley and Goldman Sachs, have been solid all the way
Taking cover
US energy companies are increasingly taking out terrorism cover, even though none has yet made a claim. This is partly because the cost of policy premiums is falling. But this trend may be under threat. Joe Marsh reports
Agree to disagree
Volatility in the dry freight market has led to the use of derivatives such as forward freight agreements and the development of other innovative products. But will they have a lasting impact on the energy markets? By Hann Ho
Risky liquidations
It is all too easy to go for the simplest solution when liquidating an energy portfolio of different positions. Brett Humphreys discusses some of the problems with appropriately calculating the VAR associated with liquidating a portfolio