Handbook of Multi-Commodity Markets and Products: Structuring, Trading and Risk Management (The Wiley Finance Series) - Hardcover

Roncoroni, Andrea; Fusai, Gianluca; Cummins, Mark

Hardcover

ISBN 10: 047074524X ISBN 13: 9780470745243

Publisher: Wiley, 2015

Synopsis

The comprehensive guide to working more effectively within the multi-commodity market.

The Handbook of Multi-Commodity Markets and Products is the definitive desktop reference for traders, structurers, and risk managers who wish to broaden their knowledge base. This non-technical yet sophisticated manual covers everything the professional needs to become acquainted with the structure, function, rules, and practices across a wide spectrum of commodity markets. Contributions from a global team of renowned industry experts provide real-world examples for each market, along with tools for analyzing, pricing, and risk managing deals. The discussion focuses on convergence, including arbitrage valuation, econometric modeling, market structure analysis, contract engineering, and risk, while simulated scenarios help readers understand the practical application of the methods and models presented.

Gradual deregulation and the resulting increase in diversity and activity have driven the evolution of the traditionally segmented market toward integration, raising important questions about opportunity identification and analysis in multi-commodity deals. This book helps professionals navigate the shift, providing in-depth information and practical advice.

• Structure and manage both simple and sophisticated multi-commodity deals
• Exploit pay-off profiles and trading strategies with a diversified set of commodity prices
• Develop more accurate forecasting models by considering additional metrics
• Price energy products and other commodities in segmented markets with an eye toward specific structural features

As one of the only markets strong enough to boom during the credit crunch, the commodities markets are growing rapidly. Combined with increasing convergence, this transition presents potentially valuable opportunities for the development of a robust multi-commodity portfolio. For the professional seeking deeper understanding and a more effective strategy, the Handbook of Multi-Commodity Markets and Products offers complete information and expert guidance.

About this title

From the Back Cover:

Praise for Handbook of Multi-Commodity Markets and Products

'An excellent introduction to commodities – concise, comprehensive, up-to-date. A well thought-through, self-contained presentation of major commodity markets combined with key analytical tools used for pricing and risk management in these markets. A truly useful primer for quantitative analysts, risk professionals, students, and, in general, for anyone who needs to enter or understand the world of commodities.'
―Alexander Eydeland, PhD, Managing Director Commodities, Morgan Stanley

'A very rich and useful handbook on commodities, providing industry specialists and academics alike with a mixture of contributions on key markets and products and quantitative methods as well as "hands-on" applications within the commodities space.'
―Helyette Geman, Professor of Finance, Birkbeck University of London & Johns Hopkins University; author, Commodities and Commodity Derivatives

'Yogi Berra once wrote that "in theory, there is no difference between theory and practice, in practice there is." This book clearly delineates this difference by providing a comprehensive and contemporary survey of each. Theoreticians and practitioners rejoice!'
―Peter Carr, PhD, Global Head of Market Modeling, Morgan Stanley; Executive Director, NYU Courant Math Finance Program

'In a time when financial textbooks are highly commoditized, good commodity ones are still rare merchandise.This contribution is undoubtedly an exception. Written by acknowledged experts in the field, it offers a unique blend of practical insights and quantitative rigour. The clarity of exposition and the number of case studies makethis volume a complete and valuable reference.'
―Fabio Mercurio, PhD, Head of Derivatives Research, Bloomberg LP

'Handbook of Multi-Commodity Markets and Products by Andrea Roncoroni, Gianluca Fusai and Mark Cummins is a valuable contribution to the literature on rapidly expanding and increasingly complicated commodity markets. The book will appeal to a wide range of industry professionals, including traders, quantitative and fundamental analysts supporting trading desks, and risk managers. The book will be also an important resource to academics and business students interested in teaching about, or in careers in, commodity trading. This is a must-read for anybody who is interested in keeping up with industry trends.'
―Vincent Kaminski, Professor in the Practice of Energy Management, Jones Graduate School of Business, Rice University

'I think the book does a superb job in covering all the relevant aspects of commodity markets, presenting real business elements in a clear and logical fashion, providing a comprehensive knowledge base to anyone who needs to understand the world of commodities markets.'
―Lorenzo Ceppatelli, Head of Risk, ENEL

From the Inside Flap:

Over recent decades, the marketplace has seen an increasing integration, not only among different types of commodity markets such as energy, agricultural, and metals, but also with financial markets. This trend raises important questions about how to identify and analyse opportunities in and manage risks of commodity products.

The Handbook of Multi-Commodity Markets and Products offers traders, commodity brokers, and other professionals a practical and comprehensive manual that covers market structure and functioning, as well as the practice of trading across a wide range of commodity markets and products. Written in non-technical language, this important resource includes the information needed to begin to master the complexities of and to operate successfully in today's challenging and fluctuating commodity marketplace.

Designed as a practical practitioner-orientated resource, the book includes a detailed overview of key markets -- oil, coal, electricity, emissions, weather, industrial metals, freight, agricultural and foreign exchange -- and contains a set of tools for analysing, pricing and managing risk for the individual markets. Market features and the main functioning rules of the markets in question are presented, along with the structure of basic financial products and standardised deals. A range of vital topics such as stochastic and econometric modelling, market structure analysis, contract engineering, as well as risk assessment and management are presented and discussed in detail with illustrative examples to commodity markets.

The authors showcase how to structure and manage both simple and more complex multi-commodity deals. Addressing the issues of profit-making and risk management, the book reveals how to exploit pay-off profiles and trading strategies on a diversified set of commodity prices. In addition, the book explores how to price energy products and other commodities belonging to markets segmented across specific structural features.

The Handbook of Multi-Commodity Markets and Products includes a wealth of proven methods and useful models that can be selected and developed in order to make appropriate estimations of the future evolution of prices and appropriate valuations of products. The authors additionally explore market risk issues and what measures of risk should be adopted for the purpose of accurately assessing exposure from multi-commodity portfolios.

This vital resource offers the models, tools, strategies and general information commodity brokers and other professionals need to succeed in today's highly competitive marketplace.

About this edition

• Publisher: Wiley
• Publication date: 2015
• ISBN 10: 047074524X
• ISBN 13: 9780470745243
• Binding: Hardcover
• Edition number: 1
• Number of pages: 1072