A hands-on guide to navigating the new fuel markets
Fuel Hedging and Risk Management: Strategies for Airlines, Shippers and
Other Consumers provides a clear and practical understanding of
commodity price dynamics, key fuel hedging techniques, and risk
management strategies for the corporate fuel consumer. It covers the
commodity markets and derivative instruments in a manner accessible to
corporate treasurers, financial officers, risk managers, commodity
traders, structurers, as well as quantitative professionals dealing in
the energy markets.
The book includes a wide variety of key topics related to commodities
and derivatives markets, financial risk analysis of commodity consumers,
hedge program design and implementation, vanilla derivatives and exotic
hedging products. The book is unique in providing intuitive guidance on
understanding the dynamics of forward curves and volatility term
structure for commodities, fuel derivatives valuation and counterparty
risk concepts such as CVA, DVA and FVA. Fully up-to-date and relevant,
this book includes comprehensive case studies that illustrate the
hedging process from conception to execution and monitoring of hedges in
diverse situations.
This practical guide will help the reader:
- Gain expert insight into all aspects of fuel hedging, price and
volatility drivers and dynamics.
- Develop a framework for financial risk analysis and hedge programs.
- Navigate volatile energy markets by employing effective risk
management techniques.
- Manage unwanted risks associated with commodity derivatives by
understanding liquidity and credit risk calculations, exposure
optimization techniques, credit charges such as CVA, DVA, FVA, etc.
