Limited places are still available on Baltic Exchange Academy's popular Freight Derivatives & Shipping Risk Management (30-31 October) and Advanced Freight Modelling & Trading (1-2 November) classroom programmes in Houston.

 

Freight Derivatives & Shipping Risk Management

 

  • Practicalities of FFA trading: Documentation and settlement; electronic trading; FFA and hedging examples for spot, time-charter, container and tanker routes
  • Options: Terminology, using freight options for hedging; option trading strategies; pricing
  • Bunker market: The fundamentals; use of bunker derivatives; forward bunker contracts (hedging and trading); options on bunker prices
  • Interest rate risk: Financing examples and sources of interest rate risk; hedging interest rate risk using forwards and futures
  • Ship price risk: Portfolio theory; diversification and risk return optimisation; Baltic S&P, Recycling, OPEX assessments
  • Value at Risk: Estimating volatility (daily vs yearly); measuring and estimating VaR: single asset vs multi-asset portfolio; VaR methodologies; examples of estimating VaR of FFA portfolios
  • Credit risk: Probability of default vs loss given default; how to measure credit risk (qualitative vs quantitative methods); credit risk & credit ratings; credit risk management in shipping; credit derivatives

Price: £1,999 (VAT not applicable)

Further 30% discount for Baltic Exchange members.

 

Advanced Freight Modelling & Trading

 

  • Introduction to freight market: Freight contracts; characteristics of the freight market; relationship between spot & time-charter freight rates
  • FFAs: Practicalities of trading; hedging and trading examples
  • Spot price dynamics: Mathematical models for freight rates; mean reversion, seasonality and jump diffusion models; estimating and setting up models
  • How to construct a forward curve
  • Technical analysis & freight trading: Chart analysis; technical trading rules; spread trading; implied TC rates
  • Using options: hedging and option trading strategies; pricing options; writing and risk management of option positions
  • Modelling freight rate volatility: Volatility models (historical, time-varying & implied); estimation and interpretation; forecasting volatility
  • Real options: option to choose (spot vs timecharter); option to lay-up; real options and ship valuation; real options and extended Net Present Value; identifying and valuing real options in shipping

Price: £1,999 (VAT not applicable)

Further 30% discount for Baltic Exchange members.

Delegates are provided with full course notes, access to our online campus and a certificate.

Email: academy@balticexchange.com to book your place.