Commodity Risk Management Author:Krzysztof Wolyniec Based on new research, with extensive coverage given to structured products in power, gas and oil, this high-level report brings you a non-technical treatment of the peculiarities of risk management in commodities. It effectively applies risk management ideas to the energy and commodity markets, providing you with a practical risk management sty... more »le. Covering a broad spectrum of commodities with an emphasis on energy, you are provided with valuable insights into the risk management techniques utilised in the energy markets. It serves as a non-technical discussion of all the major differences between financial and commodity risk management, the various trading and risk management strategies, their performance and motivation. Illustrated with several real-world examples showing you how various commercial and financial strategies correspond to a specific choice of risk management style (eg. power plant ownership, storage leasing, freight trading, etc). It answers questions that can be a constant source of confusion, such as: What are the common characteristics of all commodity markets that mark them as distinct from financial markets?
Why do you have to use forward curves for valuing physical assets?
When is hedging of market risk exposures required?
What information is required to effectively hedge?
What should you do if the required information is not available?
Under what circumstances should you pursue dynamic hedging policies? If you trade or hedge energy or commodities, this is your handbook. It will serve as a reliable aid to your daily work and keep you informed of best practice approaches, sign-posting you to sources of additional help. Written primarily as a desk reference text for commodity risk managers and traders with some background experience.« less