Physical climate risk
Will they weather the storm?
The weather derivatives market saw record volumes in 2006, but these declined sharply into 2007. Evan Koster, David Cohn and Nicholas Rock of Dewey & LeBoeuf look at where the weather market, now 10 years old, may go next
Weathering the subprime meltdown
While conventional markets have been battered by the subprime crisis, weather market players have enjoyed high returns. Investing in weather derivatives provides insulation from volatile, chaos-prone and unpredictable human decision-making processes,…
Raging California wildfires trigger transmission emergency
The California Independent System Operator Corporation (CAISO), which operates California’s open-market wholesale power grid, has issued a transmission emergency warning following four days of wildfires that have sparked the biggest US evacuation since…
Nomura to offer catastrophe risk hedging
Nomura Securities will provide its Japanese clients with risk hedging to transfer catastrophe-related risk to the capital markets via derivatives and catastrophe bonds.
Weathering risk
Earlier this year, Storm Exchange unveiled its electronic weather exchange, based on 500 proprietary, industry-specific weather indexes serving the over-the-counter markets. David Watkins speaks to David Riker, Storm's president and chief executive,…
Drought damage down under
The current drought in Australia has driven power prices to recordhighs. Early-June storms brought increased volatility and makinghedging even trickier for all market participation. Joe Marsh reports
Storm Exchange launches electronic weather exchange
Storm Exchange, a financial technology company that helps corporations to reduce the financial impact of unplanned weather on earnings, has unveiled an electronic weather exchange based on 500 proprietary, industry-specific weather indices.
The hidden costs of climate change
The business risks posed to energy companies by climate change go well beyond compliance with emissions reduction schemes. Most companies that have taken climate risks into account have only considered half the picture, says John Firth
CME to launch new weather derivatives
The Chicago Mercantile Exchange (CME) is to expand its range of weather derivatives with the launch of its Weekly Weather Index futures and options, beginning April 2.
CME launches hurricane index
The Chicago Mercantile Exchange (CME) is expanding its weather derivatives product range with the launch of CME-Carvill Hurricane Index futures and options on futures contracts.
More than just talking about the weather
Energy Risk launched the Environmental Risk brand on October 17, with an e-symposium on the weather risk market, which attracted over 500 online delegates. A range of other online conferences on emissions and renewables will follow
Gearóid Lane
The Weather Risk Management Association's Gearóid Lane talks to Oliver Holtaway about the bright prospects for managing weather risk
Weathering oil risk
Managing weather risk is increasingly important for petroleum companies. Murad Jivraj looks at how optimal oil risk management can be obtained through combining traditional structured products with new weather derivatives
Bright forecast for weather derivatives
To attract more corporate end-users, purveyors of weather derivatives are creating new products in search of the perfect hedge, as Catherine Lacoursiere finds
Weathering the impact of stormy price hikes
At the start of the 2006 hurricane season in the Atlantic Basin, Zachary Simecek takes a look at the impact on the energy markets
Hedging weather exposure
Volumetric weather risk is usually levered by the commodity price, resulting in cross-commodity exposure known as a quanto. Hedging such exposure with quanto instruments is costly. Victor Dvortsov suggests a simple strategy that allows efficient hedging…
March 2006 - Riding the rollercoaster
US natural gas prices have proven to be susceptible to weather-related price swings. Andy Weissman looks at what a risk manager should consider when designing a price risk management program
After the storm
Last year's devastating US hurricane season hammered home the link between energy and weather. But some believe it may also hold a key to predicting this year's weather, says Todd Crawford of Weather Services International
What drives natural gas?
Natural gas prices in the US are at an all-time high. The Gulf Coast hurricanes and record summer heat have taken their toll, and business is feeling the effect. Studying and applying seasonality can often protect aganst the volatility of these markets,…