Liquidity seen as top concern for energy risk managers

Trend of declining liquidity is expected to continue

Falling volumes and lower volatility across over-the-counter energy markets in Europe and the US are making liquidity one of the biggest challenges for energy risk managers, say practitioners and consultants.

"Market liquidity is increasingly becoming one of the bigger risks right now for companies, and it's making the job of the risk manager extremely difficult," says Ken Robinson, Houston-based chief risk officer at independent power producer Calpine. "Liquidity is significantly lower than two