Commodity Investing and Trading

Stinson Gibner brings two decades worth of experience to Commodity Investing and Trading, in which he and his experienced contributors discuss all aspects of the commodity markets, from fundamentals to how best to invest and trade in them. This book systematically provides the reader with an introduction to the primary risk drivers of each of the principle commodity markets.

[...]... worked at Barclays, Louis Dreyfus, Bunge, Enron and BP, he is also MD of the Commodity Trading Room at ESCP Europe, and develops trading and risk management software with riskGRID xv 00 Prelims CIT _Commodity Investing and Trading 26/09/2013 11:30 Page xvi COMMODITY INVESTING AND TRADING William Webster is head of EU power market design for RWE Supply and Trading He began his career in the UK Government... commodities trading in China in Chapter 16, and shows that although still largely restricted to domestic participants, the size of China’s commodity futures markets now rivals commodity markets globally xx 01 Chapter CIT _Commodity Investing and Trading 25/09/2013 15:43 Page 1 Part I Commodity Market Fundamentals 01 Chapter CIT _Commodity Investing and Trading 25/09/2013 15:43 Page 2 01 Chapter CIT _Commodity Investing. .. Prelims CIT _Commodity Investing and Trading 26/09/2013 11:30 Page xii COMMODITY INVESTING AND TRADING numerous publications and is co-author of the Investors’ Guide to Farmland He received a BA in financial management from the University of St Thomas and an MBA in finance and investment banking from the University of Wisconsin, Madison Rita D’Ecclesia is a professor at Sapienza University of Rome and visiting... markets in energy, metals and xvii 00 Prelims CIT _Commodity Investing and Trading 26/09/2013 11:30 Page xviii COMMODITY INVESTING AND TRADING agriculture Michael S Haigh starts us off with an investigation into the importance of non-fundamental information He uses principle component analysis to discover how commodity market behaviour has changed over the years, and shows evidence that commodity market participants... at Columbia xiii 00 Prelims CIT _Commodity Investing and Trading 26/09/2013 11:30 Page xiv COMMODITY INVESTING AND TRADING University, College of Physicians and Surgeons, where as a researcher he pioneered the use of neural networks in the analysis of complex genetic inheritance in humans Paul earned his bachelor’s and master’s degrees in biology from Harvard University, and a master’s degree in genetics... index by using a carefully selected portfolio of equities, and shows his tested selection methods and tracking results The third section of the book opens with two chapters by Carlos Blanco In Chapter 15, Blanco and Michael Pierce present the choices xix 00 Prelims CIT _Commodity Investing and Trading 26/09/2013 11:30 Page xx COMMODITY INVESTING AND TRADING for performing a proper analysis of credit risks... Prelims CIT _Commodity Investing and Trading 26/09/2013 11:30 Page x 00 Prelims CIT _Commodity Investing and Trading 26/09/2013 11:30 Page xi About the Authors Kostas Andriosopoulos is executive director of the Research Centre for Energy Management at ESCP Europe Business School His research interests include price modelling, financial engineering and the application of risk management techniques and innovative... more evident as the credit crisis resulted in suspensions and cancella3 01 Chapter CIT _Commodity Investing and Trading 25/09/2013 15:43 Page 4 COMMODITY INVESTING AND TRADING tions of hundreds of commodity projects As such, changes in global economic activity, Purchasing Manager’s Index (PMI) strength, dollar strength and changes in inflation expectations (resulting from quantitative easing) are playing... G4 average) and the ratio of gold to gold equity Second, the scoring 9 01 Chapter CIT _Commodity Investing and Trading 25/09/2013 15:43 Page 10 COMMODITY INVESTING AND TRADING technique is developed Of the six variables selected, a score is assigned depending on the current value of the variable over the time horizon Each day, the variables are sorted based on the last 30 days of data, and are assigned... SG Cross Asset Research 11 01 Chapter CIT _Commodity Investing and Trading 25/09/2013 15:43 Page 12 COMMODITY INVESTING AND TRADING Figure 1.11 But a one standard deviation drop in the DJUBS does not influence sentiment Std Dev 0.1 0.08 0.06 Reaction of sentiment to a drop in DJUBS over 10 days 0.04 0.02 0 1 2 3 4 5 6 7 8 9 10 Source: SG Cross Asset Research standard deviation decline in sentiment results . 15:36 Commodity Investing and Trading 00 Prelims CIT _Commodity Investing and Trading 26/09/2013 11:30 Page i 00 Prelims CIT _Commodity Investing and Trading 26/09/2013 11:30 Page ii Commodity Investing. Energy and Commodity Physical and Financial Portfolios 371 Carlos Blanco NQuantX LLC and MTG Capital Management COMMODITY INVESTING AND TRADING vi 00 Prelims CIT _Commodity Investing and Trading. Commodity EDITED BY STINSON GIBNER Investing and Trading Commodity Investing and Trading Edited by Stinson Gibner For some, the trends - and volatility - in commodity markets