Commodity Markets and Structured Commodity Finance

4.5
2 reviews
  • Professor German's vast knolwedge and experience cannot be described with words. It was a pleasure to listen to her lectures. If you are interested in commodities, you should take this course.
    |
  • When I started the course, I knew nothing about the commodities market. I left the room with a holistic and complete picture on how they work.
    |

Short course

In London

£ 2,790 + VAT

Description

  • Type

    Short course

  • Location

    London

  • Duration

    2 Days

Stagnant prices in the 1990s followed by a large rise in the years 2000 all the way into 2008 and a collapse at the time of the financial crisis, the price behaviour since the end of 2008 has been commodity specific.

In the world of today’s low energy prices, trading strategies have to be more subtle and should be organized around spreads, term structure of forward prices. In the case of crude oil and natural gas, the geography of the different markets needs to be comprehended In order to build strategies. For agricultural commodities, weather risk continues to be the main source of risk, together with credit.

This course is also available remotely via LFS Live.

Facilities

Location

Start date

London
See map
34 Curlew Street, se12nd

Start date

On request

About this course

This comprehensive 2 day programme focuses on understanding price formation, management of spot and derivatives commodity positions and investing in commodities. It provides an in depth analysis of financial instruments; issues of delivery when warehouses are bought by strategic players; and investment opportunities going forward in the world of commodities, in particular the rewarding activities of Trade Finance and Commodity Inventory Finance.

Commodity traders
Hedge fund managers
Investment bankers
Energy company risk managers
Insurance companies
Industry Executives

A background in finance and a basic knowledge of commodity markets is assumed.

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Reviews

4.5
  • Professor German's vast knolwedge and experience cannot be described with words. It was a pleasure to listen to her lectures. If you are interested in commodities, you should take this course.
    |
  • When I started the course, I knew nothing about the commodities market. I left the room with a holistic and complete picture on how they work.
    |
100%
4.4
fantastic

Course rating

Recommended

Centre rating

Financial Analyst

5.0
17/10/2016
What I would highlight: Professor German's vast knolwedge and experience cannot be described with words. It was a pleasure to listen to her lectures. If you are interested in commodities, you should take this course.
What could be improved: No negative aspects.
Would you recommend this course?: Yes

Senior Economist

4.0
17/10/2016
What I would highlight: When I started the course, I knew nothing about the commodities market. I left the room with a holistic and complete picture on how they work.
What could be improved: Nothing bad.
Would you recommend this course?: Yes
*All reviews collected by Emagister & iAgora have been verified

This centre's achievements

2016

All courses are up to date

The average rating is higher than 3.7

More than 50 reviews in the last 12 months

This centre has featured on Emagister for 15 years

Subjects

  • Commodities
  • IT risk
  • Trading
  • Gas
  • Options
  • Swaps
  • Credit
  • Natural Gas
  • Finance
  • Commodity
  • Derivatives
  • Commodity Spot
  • Trading Strategies
  • Energy
  • Agricultural Commodities
  • Crucial Commodity
  • Raw Materials
  • Platinum

Teachers and trainers (1)

Hélyette  Geman

Hélyette Geman

Teacher

Dr Helyette Geman is the Director of the Commodity Finance Centre at the University of London and Johns Hopkins University. She holds a Masters degree in Theoretical Physics and a PhD in Probability from the University Pierre et Marie Curie; a PhD in Finance from the University Pantheon Sorbonne. Dr Geman has been a scientific advisor to major financial institutions, insurance companies and energy, commodity and mining companies for the last 21 years, and has published 126 papers in top finance and insurance journals.

Course programme

Day One

Fundamentals of Spot and Forward Commodity Markets

  • Outlook of Commodity Markets
  • Price Formation in Commodity Spot Prices
  • Commodity Exchanges: The Old and the New
    - The Importance of Liquid Indexes for the Growth of Derivatives
    - Shipping as an Important Part of Commodities Trading
    - Trade Finance as a Profitable Activity
    - Bill of Lading and Letters of Credit
    - Commodity Inventory Finance: Famous losses involving major banks
  • Inventory and Commodity Spot Price Volatility
    - Theory of Storage and Convenience Yield
    - Carry Trade Relationship and Shape of the Forward Curve
  • Margin Deposits and Margin Calls in Futures Trading
  • Futures and Forwards
  • Swaps

Metals

  • Base Metals
    - Aluminium
    - Copper
    - Nickel, Tin, Lead, Zinc
    - Iron Ore and Steel
    - The London Metal Exchange
    - Warehouses and Recent Delivery Problems
    - The New Exchanges: Shanghai, Singapore
  • Precious Metals
    - Gold over the last 10 years
    - Silver
    - Platinum, Palladium and their specific risks

Energy

  • Crude Oil and Oil Refined Products
  • Oil Forward Curves over the last ten years
  • Changes in the Forward Curve and Trading Strategies

Case Study: Hedging Strategies for an Industrial Producer/Consumer

Day Two

Energy (cont.)

  • Natural Gas, Shale Gas and LNG
  • Coal and the contrasted situation across major countries
  • Electricity and its current sources. The example of Germany
  • Uranium
  • Rare Earths, Cement and Raw Materials. The case of China

Risk Management of Commodities and Raw Materials

  • The Use of Options to Hedge or Get Exposure to Commodity Prices
  • Plain Vanilla Options on Futures
  • Traded Average Price Options (TAPOs) and Average Rate Swaps on the LME
  • Exchange and Spread Options
  • Volatility Skew/Smile in Commodities
  • Valuation of Physical Assets. The example of a Power Plant, an Aluminium Smelter, a Gas Storage Facility

Agricultural Commodities

  • Weather Risk and Country Risk in Agricultural Commodities
  • Hedging Agricultural Risk with Weather Derivatives
  • Fertilizers and Fertilizer Swaps
  • Volatility in Corn and Wheat Prices
  • Coffee, Cocoa, Sugar
  • Water as a Crucial Commodity

Investing in Commodities

  • The different vehicles
  • Structured Notes on Commodities
  • Investing in Shares of Commodity Mining companies
  • Mergers, Acquisitions and IPOs in the Mining world
  • The Challenges in building and managing a Commodity Index
  • Commodity as Collateral

Commodity Markets and Structured Commodity Finance

£ 2,790 + VAT