Hedge

Isabel Schnabel: Interview with Der Spiegel

Saturday, April 10, 2021 - 12:01am

Interview with Isabel Schnabel, Member of the Executive Board of the ECB, conducted by Tim Bartz and Stefan Kaiser on 1 April and published on 9 April 2021, in print on 10 April 2021In the United States, the cyclically adjusted price/earnings ratio is now higher than it was before the financial crisis of 2008.

Key Points: 

Interview with Isabel Schnabel, Member of the Executive Board of the ECB, conducted by Tim Bartz and Stefan Kaiser on 1 April and published on 9 April 2021, in print on 10 April 2021

    • In the United States, the cyclically adjusted price/earnings ratio is now higher than it was before the financial crisis of 2008.
    • Have equity and real estate prices reached such heights again that they are bound to implode at some point?
    • The collapse of the US hedge fund Archegos has just generated multi-billion losses for large banks such as Credit Suisse and Nomura.
    • There is a need to scrutinise the reasons why the banks enabled the fund to leverage up to such an extent.
    • The institutions thought that their loans were collateralised by the equity stakes held by Archegos.
    • But as the fund was forced to sell these stakes quickly and the prices were plummeting, the collateral was no longer worth much.
    • We can be glad that the effect has been limited to just a few players.
    • That sounds as if the financial sectors avoidance of more serious consequences was more down to luck than good judgement.
    • It is thanks to regulation that the banks have sufficient capital to cushion losses of that nature.
    • But more is to be done when it comes to funds, because their regulation is predominantly geared towards protecting investors.
    • Nonetheless, it is a warning signal that there are considerable systemic risks that need to be better regulated.
    • Are you worried about the prospect of a new, hitherto unregulated currency emerging alongside the euro, dollar and the like?
    • In our view it is wrong to describe bitcoin as a currency, because it does not fulfil the basic properties of money.
    • What really matters, though, is that the European economy takes off again, in which case the debt will also be manageable.
    • All decision-makers, and that includes the ECB, need to ask themselves what they can contribute within their respective mandates.
    • First, climate change has a massive impact on the economy, due to natural disasters for instance, and hence also on price stability.
    • And second, the ECBs mandate requires it to support the EUs economic policy, in which climate protection plays a leading role.

ICE Announces That a Record 14,419 Murban Crude Oil Futures Contracts Traded on April 7

Thursday, April 8, 2021 - 1:30pm

Intercontinental Exchange, Inc. (NYSE:ICE), a leading global provider of data, technology, and market infrastructure, today announced that a record 14,419 ICE Murban Crude Oil Futures contracts traded on ICE Futures Abu Dhabi (IFAD) on April 7, marking its highest volume day since the contracts launched on March 29.

Key Points: 
  • Intercontinental Exchange, Inc. (NYSE:ICE), a leading global provider of data, technology, and market infrastructure, today announced that a record 14,419 ICE Murban Crude Oil Futures contracts traded on ICE Futures Abu Dhabi (IFAD) on April 7, marking its highest volume day since the contracts launched on March 29.
  • Alongside ICE Murban Crude Oil Futures, IFAD launched trading in 18 Murban-related cash settled derivatives and inter-commodity spreads, offering the market the broadest range of ways to trade and hedge Murban crude oil.
  • This includes 34,202 ICE Murban Crude Oil futures contracts and 4,510 Murban-related cash settled derivatives, with 38 firms having traded on IFAD since the launch.
  • The scale of the response from the market to the launch of Murban futures is both encouraging and validating, said Jamal Oulhadj, President of ICE Futures Abu Dhabi.

Green Tiger Markets (GTM) Launches Pilot for Philippines Energy Contracts

Wednesday, March 10, 2021 - 1:25am

The pilot marketplace will allow business participants to buy and sell forward contracts for Philippines energy to hedge their price risk exposure in a simulated, test trade environment.

Key Points: 
  • The pilot marketplace will allow business participants to buy and sell forward contracts for Philippines energy to hedge their price risk exposure in a simulated, test trade environment.
  • These pilot participants represent, on a wholesale basis, approximately:
    40% of the Philippines electricity generation capacity, and
    65% of the Philippines electricity consumption.
  • We know that bringing transparency and price discovery to Philippines energy will help to reduce the price volatility that Filipinos experience, says John Knorring, CEO of Green Tiger Markets.
  • About Green Tiger Markets: Green Tiger Markets (GTM) develops and operates derivatives marketplaces that facilitate the forward hedging of price on a financial basis.

AEGIS Hedging Solutions Files SEF Application with CFTC

Wednesday, March 3, 2021 - 10:00pm

AEGIS has established a subsidiary, AEGIS SEF, LLC ("AEGIS SEF"), to facilitate the negotiation and execution of bilateral derivative contracts between commercial end-users and their financial counterparties.

Key Points: 
  • AEGIS has established a subsidiary, AEGIS SEF, LLC ("AEGIS SEF"), to facilitate the negotiation and execution of bilateral derivative contracts between commercial end-users and their financial counterparties.
  • Trading on the AEGIS SEF will be focused on bona fide hedge transactions; swaps not used for hedging purposes (i.e., speculative trades) will not be permitted.
  • AEGIS Hedging Solutions enables companies to manage their commodity price and interest rate risk through leading software and advisory capabilities.
  • AEGIS SEF (US) LLC, a subsidiary of AEGIS Hedging Solutions, will operate markets for commodities, interest rate swaps and other instruments.

Twitter, Inc. Announces Pricing of $1.25 Billion Convertible Notes Offering

Tuesday, March 2, 2021 - 2:00pm

The notes will not bear interest, and the principal amount of the notes will not accrete.

Key Points: 
  • The notes will not bear interest, and the principal amount of the notes will not accrete.
  • The notes will mature on March 15, 2026, unless earlier repurchased or converted.
  • Conversions of the notes will be settled in cash, shares of Twitter's common stock or a combination thereof, at Twitter's election.
  • In connection with the pricing of the notes, Twitter entered into privately negotiated convertible note hedge transactions with certain of the initial purchasers and/or their respective affiliates and another financial institution (the "hedge counterparties").

ICE Announces Rapid Growth in Marine Fuel and Wet Freight Complex a Year on From IMO 2020

Thursday, February 25, 2021 - 1:38pm

Since February 2019, ICE has launched a series of cash settled Marine Fuel products which settle against the S&P Global Platts physical Marine Fuel 0.5% assessments, including a further 15 contracts which launched in December 2020.

Key Points: 
  • Since February 2019, ICE has launched a series of cash settled Marine Fuel products which settle against the S&P Global Platts physical Marine Fuel 0.5% assessments, including a further 15 contracts which launched in December 2020.
  • In an increasingly volatile pricing environment globally, companies are choosing to hedge their underlying exposure to marine and freight markets.
  • Customers are trading ICE Marine Fuel contracts as outright futures, time spreads, differentials to High Sulphur Fuel Oil, Brent, or Low Sulphur Gasoil.
  • So called 5GOs - where customers trade 0.5% Marine Fuel Differentials to ICE Low Sulphur Gasoil - are increasingly used.

Archer to Participate at the IPO Edge Forum: Air Mobility – Investing in the Flight of the Future

Friday, February 19, 2021 - 10:33pm

The live webcast, hosted in partnership with Nasdaq and The Palm Beach Hedge Fund Association, will include a panel discussion followed by a live Q&A session.

Key Points: 
  • The live webcast, hosted in partnership with Nasdaq and The Palm Beach Hedge Fund Association, will include a panel discussion followed by a live Q&A session.
  • Archers mission is to advance the benefits of sustainable air mobility.
  • Archer is creating the worlds first electric airline that moves people throughout the world's cities in a quick, safe, sustainable, and cost-effective manner.
  • Additionally, Atlas Crest will file other relevant materials with the SEC in connection with the business combination.

Purpose Investments Inc. Announces February Distributions

Tuesday, February 16, 2021 - 11:30pm

Purpose US Preferred Share Fund Non-Currency Hedged ETF Units have both a CAD and USD purchase option.

Key Points: 
  • Purpose US Preferred Share Fund Non-Currency Hedged ETF Units have both a CAD and USD purchase option.
  • Purpose Investments is an asset management company with more than $10 billion in assets under management.
  • Purpose Investments has an unrelenting focus on client-centric innovation, and offers a range of managed and quantitative investment products.
  • Purpose Investments is led by well-known entrepreneur Som Seif and is a division of Purpose Financial, an independent technology-driven financial services company.

Finzly Launches Interest Rate Derivatives App Within BankOS

Tuesday, February 16, 2021 - 12:00pm

SWAP STAR fully integrates with the banks' core platform, streamlining the pricing, booking and servicing of customers' interest rate swaps via a single application.

Key Points: 
  • SWAP STAR fully integrates with the banks' core platform, streamlining the pricing, booking and servicing of customers' interest rate swaps via a single application.
  • With SWAR STAR, financial institutions can manage the interest rate risk of their loan portfolio and help their corporate or real-estate borrowers hedge the interest rate risk of their loans.
  • "BankOS is a revolutionary platform that transforms banking and democratizes access to state-of-the-art technology for financial institutions of any size.
  • The platform also offers Expert Advisory Services, available through Finzly's partnership with Derivative Logic , an independent hedge advisory firm combining derivative market expertise with proven hedge structuring and execution capabilities in interest rate and currency derivatives.

Northern Oil and Gas, Inc. Announces Transformational Acquisition in the Marcellus Shale

Wednesday, February 3, 2021 - 9:22pm

Northern has an average of approximately ~21,500 barrels of oil per day hedged at an average price of ~$55 for 2021.

Key Points: 
  • Northern has an average of approximately ~21,500 barrels of oil per day hedged at an average price of ~$55 for 2021.
  • For 2022, Northern has an average of approximately 7,000 barrels of oil per day hedged at an average price of $50.52.
  • As noted above, Northern will begin a comprehensive hedging program for the acquired Assets.
  • Northern does not undertake any duty to update or revise any forward-looking statements, except as may be required by the federal securities laws.