What You Will Learn :
- Selecting investment strategies appropriate to market conditions
- Techniques to manage commodities risk exposure
- Methods for de-risking commodities financing activities specific to project finance, trade finance and reserve base lending
Effective commodity price risk management is becoming a critical differentiator of business performance for any company producing, trading, consuming or using commodities as part of their manufacturing or distribution process. Price volatility and increasingly complex commodity markets are the main influencing factors and companies that proactively and efficiently manage their commodity price risk will gain a competitive advantage over their peers especially when it comes to profit margin. Bankers, trade financiers, and investors alike can also benefit from the vast risk appetite opportunities in commodities.
This practical training course has been designed to provide delegates with a comprehensive overview of the commodities markets, hedging strategies and risk management techniques to effectively manage commodity exposure.
The first part of the program is an introduction to the main commodity asset classes, their market structures, and the main players in the commodity markets. It also introduces the concepts of derivatives instruments used in commodity trading.
The second part of the program focuses on how to manage commodity price exposure through hedging techniques using exchange-traded and OTC derivatives. Drawing upon numerous examples, and through the use of industry-specific case studies and workshops, participants will learn several techniques for dealing with the scope and complexity of commodities trading and risk management. The course also explores the investment vehicles available for accessing commodity exposure and the financing options in the commodities sector, including royalties and streaming; project finance; corporate facilities; trade and export finance.