Weather derivatives
Advancing on all fronts
Sompo Global Weather continues to expand its offering with timely, tailored weather risk solutions designed to service a growing global audience and diversification into new sectors supplying responsive solutions
Weather house of the year: Munich Re Trading
The weather derivatives specialist has won praise for its consistent, high-quality service
Looking back: El Niño boosts weather derivatives
Liquidity in the OTC weather derivatives market has suffered repeated false starts over the years, including one reported by Energy Risk in December 1997 with the onset of the El Niño weather pattern
Weather House of the Year: Swiss Re
Swiss Re has continued to innovate in weather risk management during the past year, playing a key role in a landmark hydropower transaction with the World Bank
Real to set sights on renewables after acquisition by Munich Re
Purchase of RenRe Energy Advisors could lead to new weather hedging tools for renewable energy
Cutting edge: Hedging price and volumetric risks of fixed-price load-serving contracts in natural gas markets
In this article, Ning Zhang and Robert Cumbie propose a utility maximisation method for natural gas marketers to find optimal hedging strategies to deal with price and load uncertainty by using price and weather derivatives. Monte Carlo simulation…
Lynda Clemmons joins NRG Energy
Lynda Clemmons, a pioneer in the field of weather derivatives and emissions trading, has been hired by NRG Energy to help run its green technology team
Weather study finds that hedging improves firm value
Hedging programmes have a positive effect on a company’s share price and financial performance, according to a new academic study that examines the use of weather derivatives by US utilities
Energy Risk USA 2012
The impact of Dodd-Frank, the future of natural gas markets and the risk of extreme weather were all topics of vigorous discussion at the 2012 Energy Risk USA conference. Alexander Osipovich reports
Energy Risk USA: Storms, warm winter, fuel interest in weather derivatives
The extreme weather that hit North America recently has spurred interest in tools designed to hedge weather risk, according to participants speaking at Energy Risk USA
Renewable energy companies increase derivatives use: survey
Companies in the renewable energy industry are increasingly turning to financial derivatives to manage risk
Ten years after its collapse, Enron lives on in energy markets
There is no doubt that the influence of Enron lives on in today’s energy markets. Energy Risk talks to ex-Enronites about how the company achieved what it did and what lessons it can still teach us today
Special report - Weather risk
This month's special report looks explores the state of play in the innovative weather derivatives market
Weather risk: gauging the exposure
There is now an array of instruments available to hedge weather exposure, but evaluating that exposure is far harder than quantifying standard exposures such as commodity price risk. Garth Renne and Shaun Hatch discuss approaches to analysing wind and…
What lies ahead for weather risk management?
While products and participation continue to evolve, more education will be crucial to boosting weather derivatives use, experts say. Pauline McCallion speaks to market participants about how to continue the market’s evolution
As US hurricane activity falls, Asian weather risk rises
US weather conditions are purported to become more neutral this year, but forecasters are already looking to Asia as a potential risk management growth area. Pauline McCallion reports
Exclusive video interview: Lynda Clemmons
The former Enron derivatives pioneer believes forcing trades on exchanges will benefit niche players and smaller companies
A new direction for weather derivatives
Specialised quanto products are now driving demand in the weather derivatives markets. Alex Davis looks at why this is the case, and how improvements in data provision are making this possible