Commodities
Opportunity knocks for smelters
Aluminium manufacturers have long used sophisticated hedging and risk management techniques to protect against fluctuating metal prices, yet they have only recently looked at transferring these skills to power risk management. David Wilson reports
Small coffee producers in Nicaragua access risk markets
The first international price insurance transaction for small coffee producers in Latin America was implemented last week in Nicaragua, with support from the World Bank’s Commodity Risk Management Group (CRMG), a unit of the International Task Force on…
Banks and commodities: against the tide
Introduction
Mean-reverting smiles
Commodity markets such as crude oil exhibit mean reversion as well as option smiles. The authors construct a model suitable for pricing exotic options in these markets
Plugging into electricity
Commodities