By Simo M. Dafir, Vishnu N. Gajjala
A hands-on advisor to navigating the recent gasoline markets
Fuel Hedging and danger administration: recommendations for airways, Shippers and different shoppers provides a transparent and functional knowing of commodity cost dynamics, key gasoline hedging options, and probability administration techniques for the company gas patron. It covers the commodity markets and by-product tools in a fashion obtainable to company treasurers, monetary officials, probability managers, commodity investors, structurers, in addition to quantitative execs dealing within the strength markets.
The booklet features a big variety of key subject matters regarding commodities and derivatives markets, monetary possibility research of commodity shoppers, hedge software layout and implementation, vanilla derivatives and unique hedging items. The publication is exclusive in delivering intuitive counsel on knowing the dynamics of ahead curves and volatility time period constitution for commodities, gas derivatives valuation and counterparty probability techniques corresponding to CVA, DVA and FVA. absolutely up to date and appropriate, this publication contains accomplished case stories that illustrate the hedging approach from perception to execution and tracking of hedges in varied situations.
This useful consultant might help the reader:
- Gain specialist perception into all elements of gas hedging, cost and volatility drivers and dynamics.
- Develop a framework for monetary danger research and hedge programs.
- Navigate unstable strength markets by means of utilising potent danger administration techniques.
- Manage undesirable dangers linked to commodity derivatives by means of realizing liquidity and credits probability calculations, publicity optimization ideas, credits fees reminiscent of CVA, DVA, FVA, etc.
Praise for Fuel Hedging and possibility Management
"Risk administration is an artwork, no longer a technology, however it definitely is helping to grasp loads of technological know-how. during this publication, the authors offer an outstanding review of either qualitative and quantitative elements of hazard administration and the way to layout and implement potent win-win gas oil hedging options that may in achieving the specified targets lower than common and severe industry conditions.
In addition to discussing key foundational concerns, the ebook additionally discusses a framework to appreciate and deal with highly very important second-order results, corresponding to credits chance or margin calls or asset-liability mismatches, that have the capability to show a good suggestion right into a undesirable outcome.
A needs to learn for a person within the finance division of a company, exchange apartment, or monetary company enthusiastic about gas oil hedging."
—Diego Parrilla, Former worldwide Head of Commodity ideas and Head of Commodities, financial institution of America
"This e-book offers hugely valuable insights into hedging and chance administration methodologies, in addition to thought, for the clients of power items. Dafir offers instinct stemming from not only top-tier commodity structuring services, but in addition broader perception from his previous adventure as a credits derivatives and exotics trader."
—Mitch Matharu, former Head of Structuring, Merrill Lynch
"An Absolute needs to learn. From the basics of oil markets to the main issues in negotiating a credits contract and minimizing hedging expenses, passing by way of the subtleties of implied volatility floor building and its implications in derivatives pricing, this ebook provide you with the crucial practitioner's toolbox, worthy even if you're a beginner or a pro gasoline trader."
—Frederic Cogny, worldwide Head of Commodities dependent items buying and selling, typical Chartered Bank
"In this publication, Dafir blends his deep wisdom of the commodity markets and the vagaries of the monetary industry together with his brilliant mathematical skill to discover gasoline hedging in a way available to gasoline Procurement Departments, CFOs and board members."
—Mark Long, Former Head and coping with Director of Merrill Lynch Commodities Asia
". . . This booklet is a hands-on consultant for an individual attracted to "Fuel Hedging and threat Management", together with legal professionals serious about the execution of commodities hedging transactions and similar ISDA and CSA negotiations."
—Justin Boyd, Former Head of monetary Markets felony, ordinary Chartered Bank