Risk management and structuring


Trident offers a full suite of services geared towards non-vanilla pricing and risk management as well as book valuation and price-testing. Below are two examples of how we could possibly add value to our clients in the energy space.

 

Crude case study:

“A large multinational oil company sought our assistance in valuing a financially settled option to hedge price exposure between on-take in lagos and delivery to index pricing in rotterdam. Calibrating to short dated swaption volatility and index/nymex prompt return spreads we provided them with pricing and a complete set of risks with which to manage their expectations for their hedge budget for the fiscal year.”

 

Natural gas & power case study:

“Tolling agreements represent one of the most complicated instruments used in the energy space to monetize forward power plan cash flows. Using advanced monte carlo methods and updated model parameters, trident valued the non-linear premium associated with a combined cycle gas turbine fired plant with min run times, variable start-up costs, and long dated declining efficiency.”

 

*TRIDENT BROKERAGE SERVICES OFFERS OTC BROKERAGE SERVICES TO COMMERCIAL ELIGIBLE CONTRACT PARTICIPANTS.BEFORE ENTERING INTO OTC DERIVATIVES TRANSACTIONS YOU SHOULD UNDERSTAND THE TERMS AND RISKS OF THE TRANSACTION INCLUDING THE POTENTIAL FOR LOSS.