In a world where commodities are increasing in importance due to the growth in emerging markets, issues over fossil fuels, renewable energy, rare earths, inflation, and precious metals (amongst many other issues), the necessity of this book is greater than at any time since the 1970s. The growing knowledge that commodities can be an effective tool for portfolio diversification has increased their desirability, and the volatility in these markets has necessitated a greater knowledge of their machinations.
Commodity Investing and Trading covers the full spectrum of investable commodity markets in order to give you a solid grounding in the nature and drivers of these markets. The book gives an overview of the fundamental risk drivers for the main commodity classes and issues pertaining to their transportation, storage and infrastructure; historical price perspectives and location pricing; a rationale of index investing and recent advances in index construction; the current trading strategies applicable to commodities; and key concerns for the coming decade.
You are provided with broad-based expertise in these highly dynamic markets, regardless of your level of experience. The investor will become knowledgeable about the opportunities in these markets along with characteristics of each market segment and cautionary articles on how to avoid pitfalls. The novice trader will find a solid introduction to market fundamentals as well as a sample of typical strategies used in each market.
All readers will be provided with insight and practical knowledge on the commodity markets that could otherwise only be obtained by directly working for natural-resource-focused trading and investing companies.
Commodity Investing and Trading is the comprehensive guide to understanding and evaluating trading and investing opportunities in the commodities markets, with chapters written by established industry experts in commodities research.
Part I: Commodity Market Fundamentals
- The Impact of Non-Fundamental Information on Commodity Markets
- Michael Haigh (Société Générale)
- North American Natural Gas
- Stinson Gibner (Whiteside Energy) and Rita D’Ecclesia (Sapienza University of Rome)
- A Day in the Life of Commodity Weather
- Jose Marquez
- Oil and Petroleum Products: History and Fundamentals
- Todd Gross (QERI LLC)
- Wholesale Power Markets
- William Webster (RWE)
- The Metals Markets
- Kamal Naqvi (Credit Suisse)
- Grains and oilseeds
- David Stack (Agrimax)
- Jay Gottlieb
Part II: Trading and Investment Strategies
- Farmland as an Investment
- Marc Schober (Colvin & Co. LLP) and Greyson Colvin (Colvin & Co. LLP)
- Agriculture Trading
- Patrick O’Hern (Natural Resources and Commodity Fund of Funds)
- Quantitative Approaches to Capturing Commodity Risk Premiums
- Mark Hooker (State Street Global Advisors) and Paul Lucek (SSARIS Advisors, LLC)
- Structural Alpha Strategies
- Francisco Blanch (Bank of America, Merrill Lynch), Gustavo Soares (Macquarie Bank) and Paul D Kaplan (Morningstar Canada)
- Energy Index Tracking
- Kostas Andriosopoulos (ESCP Europe Business School)
Part III: Future Developments
- Enterprise Risk Management for Energy and Commodity Physical and Financial Portfolios
- Carlos Blanco (NQuantX, LLC)
- Credit Valuation Adjustments (CVA) for Energy and Commodity Derivatives
- Carlos Blanco (NQuantX, LLC)
- The Past, Present and Future of China's Futures Market: Trading Volume Analysis
- Wang Xueqin (Zhengzhou Commodity Exchange)