Derivative Path’s Post

Read our free Global ABS 2024 Special Report for unmatched colour and analysis on what matters most in the #securitization market. 𝗪𝗵𝗮𝘁'𝘀 𝗶𝗻𝗰𝗹𝘂𝗱𝗲𝗱? - UK RMBS buoyant but wiser as market waits for rate cuts - Banks face big decisions as money floods into synthetics - Euro CLOs ready to steam ahead and tighten despite loan shortage - CLO manager interviews - Solar ABS looks to resume growth after withstanding rates storm 𝗔𝘄𝗮𝗿𝗱𝘀 - GlobalCapital European Securitization Awards: the winners - GlobalCapital US Securitization Awards: the winners This Special Report is brought to you in partnership with Morningstar DBRS, KBRA and U.S. Bank #capitalmarkets

Did you know that Neon Insights offers FREE market commentary? 📊 Join Neon today to access complimentary market-leading insights on topics like metals, environmental products, and electronic execution; directly from Marex desks and subject matter experts. Check out the link below to learn more about Neon Insights and Sign Up 👇 #Markets #Commentary #NeonInsights Marex

Energy ETFs, especially USO, are the top performers in terms of YTD returns, showing that there's still heat in the oil market. On the flip side, bonds are feeling the pinch, with TLT's negative Sharpe Ratio highlighting the challenges in fixed income in the current environment. Staying ahead of these shifts is what keeps us on our toes! #InvestmentStrategy #ETFs #RiskManagement #SharpeRatio #FinanceTrends #AssetManagement #PropTrading #FinancialAnalysis #MarketInsights #GoViral #TradingPros2024

In this commentary written for #MarketVoice, Jo Burnham from OpenGamma describes four examples of spikes in margin requirements in the commodity futures markets and outlines some reasons for the increases. ➡ https://lnkd.in/efTd3Fvu ICE | European Energy Exchange AG | Nodal Exchange | CME Group

one of the surprising things I learned from Jo's article is that margin requirements occasionally rise so high that they exceed the value of the position that is being margined! Those of you who trade commodity futures for a living probably know this already, but for me it put a new light on why end users might opt out of hedging market risk.

🛢 Energy: USO and XLE Have Opposite Short Patterns When the Market Moves USO and XLE display contrasting short-selling patterns: USO follows a mean-reversion strategy, while XLE aligns with momentum. These dynamics reveal distinct approaches to trading energy commodities versus equities. The USO is an ETF linked to oil futures, which in turn are connected to oil spot prices. It is a commodity product that trades like an equity. The XLE represents the energy sector of the S&P 500. The returns of the XLE are influenced by both the S&P 500 and the USO, as the XLE is an equity with commodity exposure. In terms of the USO, short positions increase when the ETF rises. This indicates that short sellers are selling while the price is increasing and buying (covering) when the price declines, employing a reversal strategy. The USO exhibits mean reversion on a weekly basis, suggesting that those shorting the ETF may either be causing the reversal or benefiting from it. Volatility data is year to date. Keep Reading: https://lnkd.in/ePkHCCJg #S3Research #S3data is essential. . . . . . . #USO #XLE #EnergyTrading #energy #stocks #traders #fintech #cfocommunity

We have just published our Quarterly Equities and Multi Asset Outlook (Q1 2024) entitled ‘Energy transition: Beyond renewables’. For investment professionals only. Rather than offering our pearls of wisdom on how to position for the next 12 months, our Q1 2024 Outlook is the result of a brainstorming exercise across our Equities and Multi Asset investment teams to uncover areas of the market where we still find significant potential upside. The opportunities that we uncovered are at the crossroads of our three favoured structural themes: infrastructure, innovation, and the low-carbon ecosystem. They all stem from one underlying transformative force: energy transition. We discuss cable companies from France to China, the critical role that some Japanese companies play in a lower carbon world, the emerging opportunity in off-grid renewables in the mining industry, and the double-sided impact of Artificial Intelligence in energy transition. Capital at risk.  https://lnkd.in/gVCaPQTY

Nodal Exchange provides superior price discovery and market transparency. Daily marks are provided to participants on approximately 60,000 futures expiries and options contracts. Participants can also view the transaction price on all Nodal Exchange trades. To learn more, visit https://lnkd.in/d6fyfmY Top 10 reasons to trade on Nodal Exchange: 1) Award Winning Risk Management 2) Capital Efficiency 3) Market Data Services 4) Price Discovery 5) Trading Flexibility 6) Product Innovation 7) Granular Contracts 8) Superior Risk Management Services 9) Commodity Exchange of the Year 10) Largest U.S. power futures exchange Contact Energy Markets at energymarkets@nodalexchange.com to trade on Nodal Exchange today.

Futures, options, and swap contracts are key to managing risks in the energy industry. By using these financial instruments, utilities can hedge against fuel price volatility, stabilize interest payments, and protect against currency fluctuations. Effectively using these contracts requires a deep understanding of market dynamics and a strategic approach to risk management. Utilities often work with financial advisors and leverage sophisticated risk management software to analyze and monitor their positions in these derivatives, ensuring their hedging strategies align with their overall financial and operational goals. These strategies enable utilities to navigate volatile markets and deliver reliable energy services. #utilitiesmanagement #utilitiesmanager #energymarket #energyconsumption #energycosts #energyanalysis #transmissioncosts #transmissionrates

Curated news for SME's at their most efficient. 4th successful year of TradeFlow News - Commodity Markets, our free-to-subscribe Channel delivering focused Commodity market-related content, from the latest #news to industry insights by market leaders on topics including #commodities, #commoditymarkets, #digitalisation, #fintech, #investments, #SMEs, #tradefinance, #riskmanagement and #digitalassets.