Credit risk
Energy Risk Europe: Questions over benefits of CVA for energy firms
Lack of credit team or CVA desk might make use of measure counterproductive, panellists worry
Energy Risk Europe: Commodity derivatives rules flawed, says SEB’s Iwarson
Derivatives regulation will impede attempts by banks to compete and do lasting damage to European market, says founder of SEB’s commodity business
Asia Commodity Derivatives House of the Year: Deutsche Bank
Despite cutbacks in Europe and the US, Deutsche Bank’s Asia commodities franchise continues to impress
Commodity trading houses face questions over systemic risk
The rapid growth of commodity trading houses has led critics to question whether these firms have become a source of systemic risk. But trading houses strongly reject such arguments, and suggest they are little more than paper tigers. Alexander Osipovich…
The furore over physical commodity trading
Despite the agitation over their role, there are valid reasons why banks are involved in physical commodities
Commodity hedgers alarmed by CFTC margin proposals
Margin rules proposed after the collapse of MF Global could dramatically raise the cost of hedging, complain market participants
US public utilities take CFTC fight to Congress
Frustrated by inaction at the CFTC, public utilities champion new law on Dodd-Frank special entities threshold
Prop trading no longer an option for dealers, says Masters
Commodity businesses must have broad client base to absorb increased regulatory costs, says JP Morgan commodities head
Trade reporting rules prove a headache for energy firms
A last-minute no-action relief letter from the US Commodity Futures Trading Commission in April gave energy firms a few extra months to prepare for Dodd-Frank reporting requirements, but participants say a huge number of challenges still need to be…
Energy Risk USA: Dodd-Frank implementation 'maddening', says O’Malia
CFTC commissioner blasts “adhocracy” of last-minute exemptions to Dodd-Frank rules
Energy firms give mixed response to Dodd-Frank swap reporting delay
Energy firms frustrated and relieved after eleventh-hour change to Dodd-Frank swap reporting deadline
Turning points: SEB's Torbjörn Iwarson
While many investment banks are having a tough time in commodity markets, Swedish bank SEB is going against the grain by increasing its appetite for risk. Torbjörn Iwarson, the bank’s head of commodities, talks to Jay Maroo
Bank commodity VAR remains muted in Q4
Fourth-quarter results show low risk appetite continues to prevail at banks, reflecting tougher capital requirements and a continuing lack of trading opportunities, writes Jay Maroo
Applied risk management series: OTC commodity swaps valuation, hedging and trading
In this article, Carlos Blanco and Michael Pierce provide an overview of swap instruments and discuss the pricing, valuation, hedging and risk management of over-the-counter commodity swaps. They also comment on the expected ramifications of new…
Post-MF Global segregation reforms spark fierce debate
The failures of brokers MF Global and PFGBest have shaken the faith of commodity hedgers in their futures commission merchants (FCMs). But are regulators doing enough to protect customers from another FCM implosion? Alexander Osipovich reports
Turning points: Frédéric Lasserre, Belaco Capital
Recent years have seen an outflow of commodity derivatives talent from banks towards hedge funds and independent traders. This is the path trodden by Frédéric Lasserre, former head of Société Générale Corporate & Investment Banking’s commodity research…
Threat of downgrade hangs over North American power firms
Low natural gas prices, weak power demand and rising costs put pressure on credit ratings
Energy market focuses on counterparty risk
The critical importance of counterparty risk management was demonstrated by the bankruptcy of Lehman Brothers in September 2008. In response, banks and other energy market participants have been trying hard to improve their game. Gillian Carr reports
Using credit valuation adjustment to set limits
In their previous article, Carlos Blanco and Michael Pierce introduced the concept of credit valuation adjustment (CVA). In this next instalment, they explore CVA allocation methods and discuss alternative structures using CVA to set limits, credit…
Banks cut commodity VAR as regulatory reform bites
Basel capital rules and regulatory reform stymie risk appetite of major banks in commodities
Corporate statement: BroadPeak Partners
BroadPeak Partners and consultancy Baringa Partners put the operational cost of a single lost or mis-booked trade at more than $600. But the cost in terms of risk miscalculation and compliance is often much higher
Energy Risk Europe 2012: Oil price “much lower” in 10 years – Credit Suisse
A slowdown in Chinese oil demand growth coupled with increasing supply will mean oil prices will be much lower in 10 years, forecasts Ric Deverell, head of commodities research at Credit Suisse