Feature
Lessons in loaning
Lenders and borrowers alike are becoming ever more innovative at a worrying time for energy company financing. But will the new ideas catch on? Paul Lyon reports
Scaling the credit cliff
How are designers of credit risk software reacting to the new credit realities of the energy trading sector? Kevin Foster talks to some leading companies to find out
A clear answer to credit problems
US firm PA Consulting is working with a number of major US energy companies to set up a one-off trade netting scheme. Kevin Foster investigates the proposals
Standing out from the crowd
Credit risk management groups can differentiate themselves from their competitors through their different capabilities. Randy Baker and Brett Humphreys explain how
Post-delivery problems
The credit exposures that arise from trading physical and financial energy are inherently more complicated and volatile than those encountered in trading purely financial products. Richard Sage looks at the different elements to be considered
Trying to model reality
Quantitative credit risk models are a must-have in today’s energy industry. But human judgement is still needed, as Maria Kielmas discovers
ABN Amro makes global OTC oil and gas drive...
Dutch bank ABN Amro last month started to offer its clients oil and gas hedgingservices, as part of its financial markets business which incorporates debt capitalmarkets, structured lending and risk management activities.
Energy firms turn to overlay
Energy companies face a tough future over pension provisions – a problem that could well exacerbate credit deterioration. Paul Lyon finds that innovative use of currency overlay could provide some form of refuge
Seeking an end to manipulation
Renewed allegations of manipulation of natural gas pipeline capacity in the US have been partly blamed on regulatory complacency. How can regulators put an end to the problems dogging the gas markets? Catherine Lacoursière reports
Energy firms find succour
US energy company debt has reached critical levels, with nervous investors and banks working hard to keep these companies afloat. But Paul Lyon finds the secretive hedge fund industry could also lend a helping hand
Buying your way out of trouble
UK high-street retailer Littlewoods has saved £1.5 million through an energy risk management and procurement programme. Utilyx’s Nigel Cornwall looks at how other companies can reduce energy costs through purchase programmes
Cross-border conundrums
Analysts at rating agency Standard & Poor’s Lee Munden and Paul Lund look at the future of cross-border trading in Europe, given the credit crises of 2002
Power asset prices plummet
The energy price boom may be over, but bargain hunters beware: the predicted sale of US generation assets is yet to occur. Kevin Foster reports
Own, sell or restructure
UK and US utilities are presently saddled with a lot of debt, thanks to overcapacity and low power prices. But what’s the best way for these firms to deal with the power plants they don’t need? By Jessica McCallin
Delaying the inevitable?
As Reliant Resources celebrates a $6.2 billion refinancing deal, some in the industry say such deals are merely postponing problems that are bound to resurface. James Ockenden reports
Bearing the brunt
Building contractor bankruptcies of have recently stressed the credit profiles of several power projects in the US. Standard & Poor’s Scott Taylor and Tobias Hsieh look at how sponsors and lenders responded and the effects on the various parties
The case for financially settled contracts
Banks and hedge funds have shied away from trading electricity due to fear and ignorance of the physical nature of the market. But, as Todd Bessemer of Accenture points out, financially settled contracts can avoid the complexity of physical delivery and…
A Spanish power struggle
A takeover bid by gas distributor Gas Natural for power utility Iberdrola may provide the impetus for much-needed competition in the Spanish energy market. But the bid has upset many traditional links in politics, finance and business. By Maria Kielmas
The LMP supermodel
With Ferc’s standard market design (SMD) seeking a shift from zonal power pricing to nodal pricing, the concept of locational marginal pricing (LMP) has become a key policy issue. Henwood Energy’s Vikram Janardhan proposes 10 key modelling features to…
Carbon across Europe
Pan-European emissions trading is a step closer after agreement of an EU directive. Atle Christiansen and Kristian Tangen of Point Carbon look at the consequences
Tough talk on derivatives
The Commodity Futures Trading Commission and Ferc are getting tough in throwing fines around. Is this a ploy to avoid being lumbered with further over-the-counter regulatory responsibilities? Some market participants certainly think so. By Paul Lyon
Speculate away
A new report argues that speculative trading in the crude oil markets contributes far less to volatility than its critics suggest. Kevin Foster looks at the arguments
A formula for high prices
The US chemical industry is crying foul over spiralling natural gas prices, but there are measures they can take to protect themselves, as Kevin Foster discovers
How to spot a VaR cheat
Traders can use weaknesses in VaR measurement to make it appear that they are not taking any risks. Brett Humphreys exposes how easily this can be done