Market risk
Beat the system
The complexity of the energy markets has given rise to a host of risks that traditional trading systems often do not address. Paul McLean-Thorne gives his views on a well-designed energy trading and risk management system
Nybot in Nymex sights
Nymex aims to buy Nybot as part of its expansion and acquisition drive, according to Nymex president Robert Collins.
Flying high
The US airline industry is struggling due to high jet fuel prices. Accordingly, one trade association is urging the Bush administration to change its oil purchasing strategy. By Paul Lyon
The deal deluge
Last year was certainly an interesting time for energy company financing, and some of the most important deals were completed just before year-end. Paul Lyon looks back at some of the major trends and asks what 2004 will hold
Winning players
A turbulent year in energy markets showed there was more competition between banks and oil majors, and further highlighted the need for a solution to the credit issues dogging energy companies and airlines. By James Ockenden
Risk at the margin
Competition and deregulation has led to new ways of running utilities, and the commodity-trading model has emerged as the leading approach. But the challenge lies in how it is applied, argues Lawrence Haar
Mark Tawney
Mark Tawney, head of Swiss Re’s weather desk, admits that more work is needed if the weather risk markets are to reach maturity. By Paul Lyon
Spread Modelling for Energy Risk
Jean-Noel Dordain and Stephane Mayrague, members of the Sophis research team, present the dramatic advantages of a spread risk analysis for energy trading.
’Tis the season...
Abstract: Aurelian Tröndle presents a general framework for modelling prices of storable and non-storableenergy assets, which sheds light on different market fundamentals, and showshow energy market volatility is seasonal and anything but stable. The…
Weathering the storm
Natural gas markets are thought to be one of the most sensitive to changes inthe weather, but how much do other factors affect price movements? MaryAshleyHall , energy market specialist with Fame, looks at some tried and tested methodsof managing weather…
Banks grab distressed UK assets
Six European banks intend to buy around 10GW of distressed UK power assets usingfinancial instruments. But their main rival, MMC, says hard cash is needed towin the UK market. By James Ockenden
The future of freight
The Baltic Exchange has recently shelved plans to offer freight derivatives,yet rising freight rates should aid the development of the embryonic forwardfreight agreement market. By Paul Lyon
Brokers look toshow their worth
Brokers are increasingly looking to provide energy price data. The choice may be wider, but are energy firms getting the credible data and analysis they need for intelligent price forecasts? Joe Marsh reports
Modernisingprice reporting
Recent investigations have seriously affected the voluntary reporting of energy price data. Now, the market is ready to move on. Edison Electric Institute’s Richard McMahon gives his organisation’s views on the future operation of indexes
Jean-Marc Bonnefous
Jean-Marc Bonnefous, BNP Paribas’ global head of commodity derivatives, says his unique division will keep it ahead of the game. By Paul Lyon
Capital calculations
The latest Committee of Chief Risk Officers white paper offers capital adequacy guidelines for energy merchants. But why should energy firms perform these calculations? Glyn Holton asks whether the CCRO has missed the point
In pursuit of the eurobarrel
The markets say they do not want oil prices in euros. But denominating internationalcrude prices in euros is a political ambition the European Union seems determinedto pursue – starting with Russia. MariaKielmas reports
Cash upfront
Memphis Light, Gas & Water is readying a landmark bond sale to fund a prepay electricity contract with the Tennessee Valley Authority. But some fear the deal could set a dangerous precedent. By Paul Lyon
Dissecting risk
Abstract: Naveen Andrews and MarkThomas explore a method of calculating VAR in measuring component market risk under conditions of imperfect correlation across positions within a portfolio. It is easily adapted to existing Monte Carlo systems,…
Flexible bonds
A depressed power market means major firms face an uphill struggle to refinancetheir debt. But a commodity hedge has given US energy giant Calpine Corp considerableflexibility in its $800 million bond issue. By James Ockenden