Risk Management in Commodity Markets: From Shipping to Agriculturals and Energy

Commodities are one of the fastest growing markets worldwide. Historically misunderstood, generally understudied and undervalued, certainly underrepresented, commodities are suddenly receiving the attention they deserve. After equities, fixed income and credit, this strategic asset class that has existed since the beginning of time is finally becoming a subject of research and modelling work on the part of academics and practitioners. Bringing together some of the leading authors in their fields, this book focuses on the risk management issues associated with both soft and hard commodities such as energy, weather, agriculturals, metals and shipping. Taking the reader through the various aspects of the commodities markets, the authors discuss the intricacies of modelling spot and forward prices, as well as the design of new Futures markets. The book also addresses the use of options and other derivative contract forms for hedging purposes, as well as supply management in commodity markets. The implications of climate policy in different continents; the various freight derivatives markets and products used to manage shipping and freight risk in a global commodity world are also presented and explained. It will be valuable reading for energy and mining companies corporates, utilities' practitioners, commodity and cash derivatives traders in investment banks, CTA's and hedge funds managers alike. von Geman, Helyette