Magazine article from our research archive:
|
|
Weather Derivatives, Spatial Aggregation, and Systemic Risk: Implications for Reinsurance Hedging
- Article from:
-
Journal of Agricultural and Resource Economics
- Article date:
-
April 1, 2008
- Author:
- Woodard, Joshua D; Garcia, Philip
|
Copyright informationCopyright Western Agricultural Economics Association Apr 2008. Provided by ProQuest LLC. (Hide copyright information)
|
Previous studies identify limited potential efficacy of weather derivatives in hedging agricultural exposures. In contrast to earlier studies which investigate the problem at low levels of aggregation, we find that better weather hedging opportunities may exist at higher levels of spatial aggregation. Aggregating production exposures reduces idiosyncratic risk, leaving a greater proportion of the total risk in the form of systemic weather risk which can be effectively hedged using relatively simple weather derivatives. The aggregation effect suggests that the potential for weather derivatives in agriculture may be greater than previously thought, particularly for aggregators of risk such as ...
|
WEATHER DERIVATIVES AND WEATHER RISK MANAGEMENT
Risk Management and Insurance Review;
April 1, 2005 ;
Brockett, Patrick L; Wang, Mulong; Yang, Chuanhou;
787 words
...ABSTRACT Weather derivatives are a relatively recent kind...weather risks, and currently the weather derivatives market is the fastest-growing...market. The development of weather derivatives represents one of the recent...
|
|
Derivatives offer weather protection
Canadian Underwriter;
September 1, 1998 ;
Anonymous;
698 words
......protection against weather exposures. The weather derivatives market launched in 1997 - offers...determining the ups and downs of weather derivatives is the actual weather affecting...following example shows the value of weather derivatives to the business community. An amusement...
|
|
Weather forecasting for weather derivatives.
Journal of the American Statistical Association;
March 1, 2005 ;
Campbell, Sean D. Diebold, Francis X.;
787 words
...1. INTRODUCTION Weather derivatives are a fascinating new type...In 1997, the market for weather derivatives was nonexistent. In 1998...interesting considerations make weather derivatives different from standard...
|
|
Pricing weather derivatives.
American Journal of Agricultural Economics;
November 1, 2004 ;
Richards, Timothy J. Manfredo, Mark R. Sanders, Dwight R.;
787 words
......agribusinesses of all types, weather derivatives are a potentially...benefits to using weather derivatives to manage risk. First...volume of trade in weather derivatives has been growing...model for valuing weather derivatives that is sufficiently...demonstrates how ...
|
|
Doing something about weather: weather derivatives have helped companies...
Best's Review;
April 1, 2006 ;
Panko, Ron;
787 words
......risks dramatically spurred sales of weather derivatives last year. * Large reinsurers and...institutions play a major role in creating weather derivatives. * Trades on the CME may increasingly...booming market the past year in weather derivatives, a risk-management product. And...
|
|
Developing a market for bad weather Derivatives allow companies that are...
International Herald Tribune;
August 16, 2003 ;
Heather Timmons;
700 words
......money. The fledgling market for weather derivatives is expanding rapidly, they say...nasty weather is only going to help. Weather derivatives allow companies whose earnings are...the Chicago Mercantile Exchange. Weather derivatives were introduced six years ago and...
|
|
Bond storm
Global Finance;
March 1, 2000 ;
Coorey, Madeleine;
787 words
......whims-except perhaps those in the weather derivatives markets. Two years ago the weather...be about $5 billion in notional weather derivatives. But the potential for growth is...Internet-based market for European weather derivatives. Polasek says the wine industry...
|
|
Indifference pricing of weather derivatives.(Report)
American Journal of Agricultural Economics;
November 1, 2008 ;
Xu, Wei Odening, Martin Musshoff, Oliver;
787 words
......solution came in the mid-1990s with weather derivatives, a class of financial instruments...hedging effectiveness of agricultural weather derivatives, as well as the farmer's willing...statistical tools, the pricing of weather derivatives is challenging theoretically. This...
|
|
Weather derivatives provide umbrella
Chicago Sun-Times;
August 12, 2001 ;
Stephen Voss;
555 words
......Aquila are part of the $2.5 billion weather derivatives market, based on nominal contract...Weather, one of the two biggest U.S. weather derivatives brokers. "From now on, there will...weather portfolio manager and head of weather derivatives group for Kansas City, Mo.-based...
|
|
Weather contracts launched.
Financial News;
November 26, 2001 ;
624 words
......exchanges are rolling out listed weather derivatives contracts in a bid to capitalise...are both launching their first weather derivatives contracts. Liffe will in early December...Alex Schippers, ABN Amro's head of weather derivatives who recently completed the largest...
|
|
WEATHER RISK MANAGEMENT
Rough Notes;
May 1, 2006 ;
Moody, Michael J;
787 words
......capital market products, known as weather derivatives, are a relative newcomer to the...unacceptable risk. What they developed were weather derivatives, which are hedging instruments that...vagaries of the weather. Initially, weather derivatives began as over-the-counter (OTC...
|
|
Weathertrade, Inc. Creates tradeweather.com - First On-Line Trading System...
PR Newswire;
September 7, 1999 ;
563 words
......to temperature and precipitation weather derivatives. Currently in its final stage of...ultimately, shortfalls in profit. Weather derivatives provide protection for these businesses...are looking to reach the world of weather derivatives, says Pat Patterson, President of...
|
|
BETTING ON THE FORECAST STARTUP FIRM OFFERS FINANCIAL HEDGE AGAINST BAD...
The Cincinnati Post (Cincinnati, OH);
June 11, 2007 ;
787 words
......employees, sells what are called weather derivatives -- contracts that pay out in cash...of heat, cold, rain or drought. Weather derivatives have mostly been available to very...And some observers caution that weather derivatives are too complicated and risky for...
|
|
Tradeweather.com Announces the Start of Trading.
PR Newswire;
January 18, 2000 ;
415 words
......On-Line Trading System Dedicated to Weather Derivatives - NEW YORK, Jan. 18 /PRNewswire...system dedicated to a wide variety of weather derivatives, including temperature and precipitation...ultimately, shortfalls in profit. Weather derivatives provide protection for these ...
|
See all results.
Or, try our
Advanced Search.
|