Energy Risk: Valuing and Managing Energy Derivatives

Book Description

The electricity, natural gas, and other energy markets are on the brink of becoming THE hot opportunity for institutional investors worldwide. In fact, the growth in volume for NYMEX and IPE energy contracts is the only proof you need of the enormous potential in trading these markets. Now, for the first time, this book gives you step-by-step directions on taking advantage of this developing resource. Energy Risk walks you through properly assessing and evaluating the enormous opportunities that are unique to this complex yet vibrant market. It provides not only an expert overview of energy trading but also the philosophies and specific investment strategies you need. Harvard-trained physicist Dragana Pilipovic reveals the intricacies and mechanics of today's energy markets, provides practical answers on how best to get a foothold in energy trading, and also discusses: In-depth explanations of the primary factors that influence energy risk, such as spot price behavior, volatility, and the forward price curve; A detailed introduction to the fundamental price drivers of energy markets including electricity, natural gas, and heating and crude oil; Clearly defined ways that you can use tools introduced throughout the book to achieve your company's crucial risk/return goals. Containing unique trading models that were custom-designed for managing risk in energy and commodity trading, and with over 175 charts and graphs that illustrate key features of the market's equations, correlations, and methodologies. Energy Risk will be the standard energy market reference for many years to come.

Customer Reviews:

waste of time and money.......2007-06-14

Someone , in his review, said that 50% was useless and another reader added that "I wouldn't buy it with my money": I disagee: 99% of the book is utterly useless and would noy buy it with my worst enemy's money. I'd rather spend it on something else.

I saw that there is a new edition: Please do yourself a favor: DO NOT BUY IT!

A good general introduction but needs more case studies.......2005-04-12

It is now a tautology to say that energy derivatives are very important financial instruments. Energizing a market of billions of dollars, they are useful to many different organizations and find their place in myriads of both business and personal portfolios. This book is written for those readers who are just entering the field of energy derivatives, but yet who still have a background in other areas of financial engineering. It emphasizes risk minimization, and also gives some of the author's unique perspective on the subject. Only the first six chapters were read by this reviewer and so only these will be reviewed here.

The first chapter of the book discusses the general properties of energy derivatives and the concept of risk management. The author distinguishes between `quantitative' analysis, which emphasizes the construction of models that replicate market behavior, and `fundamental' analysis, which is an attempt to understand and describe market behavior in terms of the economics of supply and demand. The author emphasizes fundamental analysis in the book. She also outlines what makes energy derivatives unique in their analysis, i.e. what makes them different from interest rate and equity markets in terms of these different analysis categories. Energy markets exhibit stronger mean reversion, she argues, and supply constraints can "shock" the system. These differences motivate the introduction of the topics of `convenience yield' and seasonality that do not have to be used in other types of markets.

Chapter 2 gets into the actual construction of financial models, with the author emphasizing the need for effective benchmarking of these models. She constructs some elementary stochastic price models and introduces some of the basic modeling terminology to be used in the book. One of these concepts is the `convenience yield' that represents the benefit that a holder of a commodity receives by holding the commodity, and is a measure of the balance between the available supply and the existing demand. Defining the convenience yield is difficult, but dominates the mathematical modeling of the energy markets. The author spends a fair amount of time discussing the mean-reversion process with more to come in later chapters. She also discusses the difference between yield and forward rate curves, a forward curve geared toward short-term interest rates, while a yield curve is a discount rate curve representing average rates from the present to points along the time axis.

In chapter 3 the author discusses some of the mathematical/statistical tools involved in energy derivatives, with the analysis of time series and distribution analysis being the two dominant tools that are examined. Time series are used to monitor day-to-day changes in prices, while distribution analysis deals with price levels over extended intervals of time. The material in the chapter is standard, and should be helpful to readers who need a review of it.

Chapter 4 is an introduction to the modeling of spot prices, with the assumption that supply and demand effects converge in the spot market prices. Derivative contracts are bought and sold with the belief that this convergence holds. After a quick look at actual time series of spot prices, the author constructs a lognormal price model and two mean-reverting models. Lognormal price models are of course standard constructions in financial engineering, and are popular for their simplicity and for enforcing positive-definiteness. Negative autocorrelation between spot prices are characteristic of energy markets, and is satisfied in mean-reverting models. The author also introduces one of her models, a two-factor model, with the first factor being the spot price, and the second factor a long-term equilibrium price, which when the latter is zero gives a single-factor model for the energy commodity spot price. Time series analysis is used to obtain the model parameters and distribution analysis is used to test the models over extended time periods. The distribution analysis involves Monte Carlo simulation, and the results showing the differences between actual and sample model simulated distributions.

Recognizing the importance of forward prices in derivatives pricing and risk management, the author gives a detailed treatment of them in chapter 5. The author points out, interestingly, that there is no correlation between energy futures prices to interest rates in the energy commodity markets. The futures and forward prices are valued in an identical manner in energy markets, and energy future price and forward price can be used interchangeably. She also uses the no-arbitrage market condition to show that spot and forward prices are different, and derives partial differential equations for the forward price, both with and without dividends.

Chapter 6 is extremely important, especially for the development of practical trading strategies, for it concerns measures of volatility for price processes. The volatility of the spot price gives information about the degree of randomness in the returns of the spot price over short intervals of time. Traders are of course very interested in volatilities, since the width of the price distribution is related to the probability of the option expiring in-the-money. This is well-known in financial modeling of derivatives, but there are some peculiarities in energy markets, such as "volatility term structure", that make the modeling process more difficult. The author discusses how to calculate historical, market-implied, and model-implied volatilities, and introduces the (two-dimensional) `discrete volatility matrix', the latter of which is due to the author. Several justifications are given for using a two-dimensional matrix of volatilities rather than a single-volatility term structure. The author does not however give any practical reasons for using this matrix or case studies that would illustrate its advantages. Reference is given to a commercial product that uses it, but it would have been helpful to the reader if the author had given more details on its use in practical everyday trading.

Not for newcomers.......2003-06-26

I work in the energy products/generation industry and thought this will help explain what the whole energy-risk field is about. I'm still as confused now as I was before I bought the book .. probably because I dont have a strong background in computational finance. This is defintely not for newcomers and is really geared to the quants.

Not for newcomers.......2003-06-26

For the Technically Minded Only........2002-03-05

This is a very useful book for those who are looking for a basic primer on risk management tools where the examples are specific to energy related derviatives.
The test is technical so this is appropriate for those who can understand sophisticated mathematical and statistical concepts. BR>Unfortunately, for someone in that audience the information is not very much different from what they already understand.
However, since it uses specific energy examples throughout the text it is useful for those looking for techniques to apply to th energy markets. Also derivatives of the energy markets are reviewed.

Book Description

Organizing Silence is a thought-provoking look at how silence is embedded in our language, society, and institutions. It provides an overview of the varied philosophical approaches to understanding the role of silence and communication. One particular view of silence/communication, as grounded in political and patriarchal frameworks, is given special attention. The author questions not only how dominant groups silence marginalized members of society, but also how marginalized groups privilege and abandon each other. Sexual harassment is given as an example of material and discursive practices that articulate both a micro and macro level of silence, and accounts of both women and men who have been sexually harassed are provided. The book provides an alternative aesthetic perspective as a way of understanding the realities we create, encouraging alternative ways to listen to the silence, and presenting novel possibilities for future research.

Customer Reviews:

Let the sun shine.......2005-06-04

Organizing Silence won the Outstanding Book of the Year Award (2000) from the National Communication Association. Chapter One offers an intriguing theory of the origin of language as grounded in silence. Chapters Two and Three review theories of silence focusing on political silencing of minority groups. Chapters Four, Five and Six discuss sexual harassment as a means of silencing people. I like that Clair included the sexual harassment of men in One Man's Story of Sexual Harassment. Chapters Seven, Eight and Nine talk about resistance to being silenced and aesthetic approaches to reach that end. I found the book well written and well researched.

There's nothing new about Silence........1998-12-27

Aesthetic theory as an ontologized by Clair recasts work that has been done in different disciplines for hundreds of years. There is nothing new about the content of the book or the way in which it is written. Import-heavy, poor in possibilities, quick to be politically correct- this is communication studies at its very worst.

Customer Reviews:

A Bit Dated but Still the Best Georgia BBQ Guide Out.......2001-01-20

In the South, barbecue is a great social equalizer. Blacks dine with Whites, overalls sit across from suits. When it comes to excellent barbecue, well then, as one life long barbecue diner said, "it don't make no difference, everybody chew'n down good barbecue is equal". Though dated, "Barbecue on My Mind" is still reliable, very useful and the best true guide we have in Georgia.

So far, of the five barbeque places I visited, using the books listings, one was excellent (The Pig, Waycross, may have the best ribs in Georgia), three were very good and one fair. In the competitive restaurant world 70% of restaurants go out of business in the first three years. However, I gather that most of these "Thirty Best Barbecue" places still exist today because, they not only are outstanding, but have proven themselves over time.

Trey Pope has a wonderful "down home" style of writing that you will enjoy. He calls `em like he sees `em. If the building is a "hole in the wall" (many of the best barbecue joints are) then he'll tell ya. He selected from hundreds of barbecue places and got down to these thirty by visiting them and ordering pork barbecue, Brunswick stew and pork ribs.

On the down side the map in this book is a joke... really bad. You have to know Georgia or have a good map to find the place outside of your area, like Zeb's Barbecue in Danielsville, where? But for excellent barbecue some of us die-hard enthusiasts will get the truck, load up the dog and put "the peddle to the metal" and make that drive. Recommended.

Book Description

This digital document is an article from Technical Communication, published by Society for Technical Communication on February 1, 2002. The length of the article is 912 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.

Citation Details
Title: Writer's Handbook for Engineering Technicians and Technologists: A Reference Manual. (Book Reviews).
Author: David Stewart
Publication: Technical Communication (Refereed)
Date: February 1, 2002
Publisher: Society for Technical Communication
Volume: 49 Issue: 1 Page: 111(2)

Distributed by Thomson Gale

Writer's Handbook for Engineering Technicians & Technologist

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Writer's Handbook for Engineering Technicians & Technologist
David Rigby
Manufacturer: Prentice Hall
ProductGroup: Book
Binding: Paperback
ASIN: B000OID5D2

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Mathematics Counts: Report of the Committee of Inquiry Into the Teaching of Mathematics in Schools Under the Chairmanship of W.H. Cockcrof
Great Britain
Manufacturer: HMSO Books
ProductGroup: Book
Binding: Hardcover

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ASIN: 0112705227

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Charity law and voluntary organisations: Report of an independent committee of inquiry set up by the National Council of Social Service, under the chairmanship ... law and practice on voluntary organisations
National Council of Social Service
Manufacturer: Bedford Square Press of the National Council of Social Service : distributed by Research Publications Services
ProductGroup: Book
Binding: Unknown Binding

General | English Law | Law | Subjects | Books
Private Law | Law | Subjects | Books
ASIN: 0719909104

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THE ECONOMIC LESSONS OF 1929 - 1931 The First Eleven Bulletins of the Committee Issued under the Chairmanship of A. H. Abbati
A. H. Abbati
Manufacturer: P. S. King
ProductGroup: Book
Binding: Hardcover
ASIN: B000LL6P7U

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Higher Education. Evidence - Part Two. Doumentary Evidence Submitted to the Committee Appointed by the Prime Minister Under the Chairmanship of Lord Robbins 1961 - 1963. Presented to Parliament by Command of Her Majesty October 1963.
Lord Robbins
Manufacturer: HMSO 1963.
ProductGroup: Book
Binding: Paperback
ASIN: B000L6FLPM

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Higher education: Appendix I to the Report of the Committee appointed by the Prime Minister under the Chairmanship of Lord Robbins, 1961-63: the demand for places in higher education (Cmnd)
Committee on Higher Education
Manufacturer: H.M.S.O
ProductGroup: Book
Binding: Unknown Binding
ASIN: B0006DH0FO

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Higher Education: Report of the Committee appointed by the Prime Minister under the Chairmanship of Lord Robbins 1961- 63
Committee on Higher Education Great Britain
Manufacturer: Her Majesty's Stationery Office
ProductGroup: Book
Binding: Paperback
ASIN: B000HIQ19O

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HIGHER EDUCATION: REPORT OF THE COMMITTEE APPOINTED BY THE PRIME MINISTER UNDER THE CHAIRMANSHIP OF LORD ROBBINS 1961-63
COMMITTEE ON HIGHER EDUCATION
Manufacturer: HMSO
ProductGroup: Book
Binding: Paperback
ASIN: B000SELOHQ

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Higher education: Report of the committee appointed by the Prime Minister under the chairmanship of Lord Robbins, 1961-63. Appendix
Great Britain
Manufacturer: H.M. Stationery Off
ProductGroup: Book
Binding: Unknown Binding
ASIN: B0006DEL5Q

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Lawmakers tapped for committees.(Legislature)(Lane County's delegation is given several chairmanships for the upcoming session): An article from: The Register-Guard (Eugene, OR)

Manufacturer: The Register Guard
ProductGroup: Book
Binding: Digital
ASIN: B0009GTPZG
Release Date: 2005-08-01

Book Description

This digital document is an article from The Register-Guard (Eugene, OR), published by The Register Guard on December 18, 2004. The length of the article is 618 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.

Citation Details
Title: Lawmakers tapped for committees.(Legislature)(Lane County's delegation is given several chairmanships for the upcoming session)
Publication: The Register-Guard (Eugene, OR) (Newspaper)
Date: December 18, 2004
Publisher: The Register Guard
Page: b1

Distributed by Thomson Gale

The Ministry and the Sacraments, Report of the Theological Commission Appointed By the Continuatin Committee of the Faith and Order Movement Under the Chairmanship of the Right Rev. Arthur Cayley Headlam

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The Ministry and the Sacraments, Report of the Theological Commission Appointed By the Continuatin Committee of the Faith and Order Movement Under the Chairmanship of the Right Rev. Arthur Cayley Headlam

Manufacturer: Macmillan
ProductGroup: Book
Binding: Hardcover
ASIN: B000H5G6EM

Book Description

Thoroughly revised and greatly expanded, this new edition is even more helpful than the classic first edition. The 1997 revision of Writing Broadcast News - Shorter, Sharper, Stronger is 40 percent longer. And it's even richer and smoother...

Customer Reviews:

Standard for Broadcast News.......2007-03-05

If you're trying to break into news on the AM/FM dial, this is a book that you must read and follow. It helps you format the way most of Radio Broadcasting does it today.

If you're a serious journalist, this book is a must........2005-08-10

This is the bible of broadcast news writing. Well organized. I'm a 25 year veteran of broadcast news and I still find information in this book that improves my writing and reporting.

Broadcast newswriting for the professional.......2002-07-16

Merv Block was himself a newswriter. He wrote for Cronkite and others; his experience is unquestioned.

Block's book, and Bliss's book(Writing News for Broadcast, Columbia University Press) are, in effect, the bibles of broadcast newswriting.
Block gives his own tips, and also shows how it's done by taking broadcast scripts apart and correcting them.
There is no better book for the professional newswriter.

can't live without it!.......2000-03-27

Ten years ago, I had the privilege of taking introductory radio writing from Mr. Block while earning my master's degree in journalism at Columbia University. If memory serves, Mr. Block also revisited my spring semester radio news course as a guest editor and instructor. He was a tough and fair instructor -- one of the many highlights of my year at 116th and Broadway.

Mr. Block's book has been indispensible to me ever since. Every so often, I reread a chapter to keep my writing fresh, and to jolt me out of the workaday rut so many reporters and anchors inhabit. Television news works on two levels, the words and the pictures, and it is a challenge and an art to make the two levels work together!

Whether you're a journalism 101 student or a seasoned professional, it never hurts to have this book on your desk (and occasionally at home!). Your viewers, producers, photographers, and managers will thank you!

Broadcast Newswriters: You Need This Book.......1999-07-14

To paraphrase Mr. Block, "if newswriting is easy, then you're doing something wrong." This book is for the lover of action verbs and simple words. You're taught to think and to see the beauty of simple writing. And if you want to be GOOD, you must learn to TELL a story. After you read this book, the news will likely not sound the same.

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Local Radio Journalism (Media Manuals)
Paul Chantler , and Sim Harris
Manufacturer: Focal Press
ProductGroup: Book
Binding: Paperback

General | Photography | Arts & Photography | Subjects | Books

Communications | Skills | Business & Investing | Subjects | Books

General | Job Hunting & Careers | Business & Investing | Subjects | Books

Journalism | Writing | Reference | Subjects | Books

General | Foreign Languages | Reference | Subjects | Books

Media Studies | Social Sciences | Nonfiction | Subjects | Books

Book Description

If you are looking for the skills to gain success in local radio journalism, this practical guide will show you how. Now completely updated to include all the latest advances in technology and changes of thinking in interviewing and programming, this continues to be the ideal starter text for beginners to radio journalism.

Local Radio Journalism concentrates on showing how to go about the different aspects of local radio journalism - from how to build and establish a small newsroom on a budget, planning and developing news stories and preparing news bulletins and ensuring their accuracy. It explains what studio equipment and interviewing techniques to use, giving guidance on running the newsdesk, how to cope in a crisis, and how to keep on the right side of the law.

An ideal starter text for journalism students
Techniques are explained clearly and succinctly
Covers the latest technology and techniques

Broadcast Journalism: Techniques of Radio and TV News (Journalism Media Manual)

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Broadcast Journalism: Techniques of Radio and TV News (Journalism Media Manual)
Andrew Boyd
Manufacturer: Butterworth-Heinemann
ProductGroup: Book
Binding: Paperback

General | Job Hunting & Careers | Business & Investing | Subjects | Books

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Journalism | Writing | Reference | Subjects | Books

General | Foreign Languages | Reference | Subjects | Books

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ASIN: 0750617608

Book Description

This new edition of Broadcast Journalism is a major revision to the premier textbook in its field and a standard primer for broadcasting courses. It is an up-to-date practical manual for would-be reporters eager to enter the hectic arenas of radio and TV news.

Broadcast Journalism offers a vivid insight into the world of electronic reporting, taking you behind the scenes at ITN and the BBC World Service. Join camera crews on a stakeout at the High Court, and capture the atmosphere in the studios of the world's largest news organisation.

All the essential skills are covered, with step-by-step instruction in reporting, recording and editing using the latest equipment.

Coverage for radio and TV includes:
- Newswriting
- Newsgathering
- Newsreading
- Interviewing
- Programme-making

The digital revolution is transforming the news, and this fifth edition explores the new opportunities emerging for journalists and online reporters using the Internet. Essential guidance is also given on how you can break into a career in journalism.

A practical manual containing all the aspiring reporter needs to know
Includes electronic and online reporting
Offers career advice

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Don't waste your money on this overpriced book
GREAT BOOK!
Fourth grade level reading, third rate writing.
What a book, what a title!!

Jock Itch
Donald D. Sabatke
Manufacturer: Broadcasters Learning Center
ProductGroup: Book
Binding: Paperback

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ASIN: 0965907104

Book Description

Jock Itch is for those "itchin' to be a DJ. Everyone, sometime in their lifetime dreams of becoming a Radio DJ. Spinning records and talking on the Radio is a real turn-on for everyone however very few know how to get into the business. Jock Itch, written by a Radio pro, tells it like it is. Now, anyone can become a DJ with no experience and you don't even need a good voice. Jock Itch also tells you how and where to apply for a job, full time or part time, and how to write a resume. If you want to enter the broadcasting industry, Jock Itch tells you how.

Customer Reviews:

Don't waste your money on this overpriced book.......2001-04-12

You gotta be kidding? Author ran a little stand alone AM station, and guided another stand alone FM into a forced sale due to poor ratings and sales. $35 for this? And, why does the author work for the Wisconsin Lottery today, instead of broadcasting?

GREAT BOOK!.......1999-10-18

I wasn't sure if I really wanted to get into this business or not. This book really helped me make my decision to go for it. I had a lot of questions and Jock Itch had the answers. I recommend it for anyone looking to become a DJ.

Fourth grade level reading, third rate writing........1999-08-17

Jock itch is chock full of useless information, most of which can be obtained by simply calling any radio station and speaking with the receptionist. Definitely not worth the $35 price tag, and definitely does not live up to it's overblown claims made by the author.

What a book, what a title!!.......1999-05-12

This book tells you how you can become a DJ or be on radio with little or no money. It is informative, but also very entertaining. I heard about the book from a friend that is a radio personality, and they used the chapter " How to select your radio name" as a topic for call ins, and were swamped with calls. This is a must have for anyone interested in getting into the business.

Average customer rating:

Shop job sheets in radio
Robert Neil Auble
ProductGroup: Book
Binding: Unknown Binding

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Radio Jobs Manual
Michael J. Langevin
Manufacturer: Michael J. Langevin
ProductGroup: Book
Binding: Paperback

Job Hunting | Job Hunting & Careers | Business & Investing | Subjects | Books

General Broadcasting | Radio | Entertainment | Subjects | Books

General | Performing Arts | Arts & Photography | Subjects | Books
ASIN: 0970492707

Book Description

The Radio Jobs Manual written by Michael J. Langevin is a useful guide to finding that crucial first announcing job in radio broadcasting. The book is also great for planning to move up into a bigger and better situation. Some of the contents include:

A simple quiz to size up your price tag on the radio jobmarket which takes into consideration factors such as: your air shift, education, contact and market size desired

How to put a winning package together: tips on everything you need to get the job you want; the tape, cover letter, resume, etc.

Guidelines on developing important contacts within the radio business

Learn about the two distinct "types" of radio stations and which one of the two you want to work for

Inside secrets on where to look to find that first or next great opportunity

How to land that important interview and then what to do when the offer comes your way

Included is an actual "job offer questionnaire" to ask a prospective employer all there right questions so you make a decision based on the facts - not your emotions

Use the broadcaster profile to size up your weak areas and maximize your talents

How to set up a winning career development plan that will keep you on the cutting edge of your chosen field

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The Personal Finance for Dummies Daily 2004 Calendar

Manufacturer: Cedco Publishing Company
ProductGroup: Book
Binding: Calendar

General | Personal Finance | Business & Investing | Subjects | Books
ASIN: 0768363608

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Money and retirement: How to plan for lifetime financial security by LeClair...
Robert T LeClair
Manufacturer: Addison Wesley Longman Publishing Co
ProductGroup: Book
Binding: Paperback
ASIN: B000OKRUN6

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