COMPARISON WITH TRADITIONAL ASSET CLASSES
This section highlights the key differences between traditional asset classes (such as fixed income and equities) and the energy markets.
- Differences between energy markets and traditional financial markets
- Limits of Arbitrage
- Exchanges and Indices
- Formula based pricing
- Markets in Transition
- Key Derivatives in Energy markets
Case study: Supply and Demand and implications for Volatility
Case study: Arbitrage limits
DETAILED LOOK AT ENERGY MARKETS
This section surveys the various energy markets, focusing n particular on oil, gas and carbon markets.
- Spot Price Behaviour (Mean reversion and Seasonality)
- Shape of the forward curve and relationship with spot prices
- Refined Products
- Intra-month spread risk
- Evolution of the global Natural Gas market
- Main price drivers
- Term structure of Volatility
- Correlation
- Importance of Spreads
- Understanding and exploiting correlations
Case study: Analysis spreads
OTHER COMMODITY SECTORS
This section gives a brief survey of the other commodity markets, and the ky drivers. This provides a platform for understanding the differences in the commodity indices.
- Agriculturals
- Base metals
- Precious metals
COMMODITIES AS AN ASSET CLASS:
This section examines why an Institutional investor would be interested in this market, and how commodities fit into a traditional portfolio..
- Main players in the commodity markets
- Active versus Passive investment
- Correlation between commodities and traditional asset classes
- Optimal weighting within portfolio
Case study: Why have a passive investment in commodities?
COMMODITIES INDICES:
This section examines the various commodity indices, and contrasts the way in which they are rolled.
- Construction of indices
- Key features of main commodity indices
- Components of return
- Analysis of roll yield
- Understanding differences in the way the various indices roll
Case study: Construction of Commodity Indices
STRUCTURED PRODUCTS
This section examines the way in which commodities are being packaged to appeal to both active and passive investors.
- Structuring products for Investors
- Analysis of main structures currently being used
Case study: Construction of oil-linked investment
LONG TERM VIEW OF PRICES
This section examines the various commodity indices, and contrasts the way in which they are rolled. It also gives an overview of two other commodity sectors: Agriculturals and Metals
- Exploring the factors that effect the long term prices of oil and agriculturals
