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Asia Risk

Powering up

Utility companies in Japan and South Korea are changing the way they purchase coal after being hit by volatile price swings in coal during the past three years. And their efforts to improve risk management are helping the development of both coal indexes…

After the storm

Asian airlines and other heavy users of fuels received a sharp lesson about the risks associated with their hedges after fuel prices peaked in 2008 and then collapsed during a six-month period. How have they moved to improve their risk management…

Return to variance?

Banks and investors were hammered on short single-stock variance positions during the crisis, causing many dealers to pull back from the variance swap market altogether. Instead, some have been pushing volatility swaps as an alternative, but not everyone…

Regulatory straitjacket?

South Korea introduced a raft of new legislation with the aim of helping make Seoul a world-class financial centre prior to the financial crisis. But the events of 2007–08 proved a game changer as regulators grappled with the damage wreaked by kikos and…

A sting in the tail

After recent financial turmoil, market participants are thinking much more rigorously about ways to protect themselves against the possibility of rare but extreme events. However, effectively hedging tail risk is not straightforward. By Mark Pengelly

Coming of age

As Australia braces itself for a shift to a fee-for-service regime for financial advisers, low-cost, relatively transparent products such as exchange-traded funds look set to flourish. Wietske Blees reports

Get to grips with liquidity

New liquidity risk measures due to be adopted in forthcoming international bank capital rules will present risk management systems with significant challenges. Christopher John Brickhill discusses some of the most pressing issues and offers potential…

Containing contango

Commodities are back in favour with investors looking for diversification and absolute returns. But market conditions, coupled with the fact that most commodities remain in contango, means passive beta investments could disappoint. How are dealers…

Tipping point?

The global financial crisis has demonstrated the Australian credit default swap market is more liquid than its counterparts in the rest of Asia. Nonetheless, Australian investors have failed to take advantage of large arbitrage opportunities and the…

Putting the building blocks in place

The concept of using derivatives for risk management is still relatively new to utilities in India and is viewed with caution by market regulators. Katie Holliday talks to market experts about how they expect the discipline of risk management to develop

Trading and assets misaligned?

The interests of trading desks may not always be aligned with the best interests of a vertically integrated company’s assets. Charles Ford discusses some approaches that address this issue

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