Chapter 14: Commodity and Natural Resource Techniques

In this section

• Storage and Transport Economics
  Storage and Transport Economics (CFA Level 1): Costs of Storage, Impact on Profitability, and Warehousing, Insurance, and Spoilage. Key definitions, formulas, and exam tips.
• Advanced Commodity Derivative Structures
  Advanced Commodity Derivative Structures (CFA Level 1): Exotic Commodity Derivatives: A Quick Refresher, Average Price Options, and Lookback Options. Key definitions, formulas, and exam tips.
• Inflation Hedging and Currency Risk Management
  Inflation Hedging and Currency Risk Management (CFA Level 1): Commodities as an Inflation Hedge, Concept of Inflation Hedging, and Why Commodities Track Inflation. Key definitions, formulas, and exam tips.
• Environmental Impact, Carbon Credits, and Regulation
  Environmental Impact, Carbon Credits, and Regulation (CFA Level 1): Environmental Impact of Commodity Production, Carbon Credits: Filtering Emissions with Market Forces, and Anatomy of Cap-and-Trade. Key definitions, formulas, and exam tips.
• Commodity Index Construction Methodologies
  Commodity Index Construction Methodologies (CFA Level 1): Key Components of Commodity Index Construction, Common Commodity Index Weighting Schemes, and Production Weighting. Key definitions, formulas, and exam tips.
• Roll Yield and Convenience Yield
  Roll Yield and Convenience Yield (CFA Level 1): Understanding Futures Markets and the Shape of the, Defining Roll Yield, and Positive vs. Negative Roll Yield. Key definitions, formulas, and exam tips.
• Sovereign and Producer Hedging Objectives
  Sovereign and Producer Hedging Objectives (CFA Level 1): Sovereign Hedging Strategies, Stabilizing National Budgets, and Sovereign Wealth Funds. Key definitions, formulas, and exam tips.
• Climate Risk and Carbon Offsets
  Climate Risk and Carbon Offsets (CFA Level 1): Rising Need to Measure and Mitigate Climate, Carbon Offsets in a Nutshell, and Verification and Certification Processes. Key definitions, formulas, and exam tips.
• Insurance-Linked Instruments for Catastrophe and Weather Risk
  Insurance-Linked Instruments for Catastrophe and Weather Risk (CFA Level 1): Understanding Catastrophe (CAT) Bonds, Key Features, and Role of Parametric Triggers. Key definitions, formulas, and exam tips.
• Physical Delivery Logistics and Supply Chain Concerns
  Physical Delivery Logistics and Supply Chain Concerns (CFA Level 1): Commodity Futures and Physical Delivery Basics, Licensed Delivery Points and Storage Facilities, and Storage Challenges. Key definitions, formulas, and exam tips.
• Commodity-Specific Trading Strategies (Metals, Energy)
  Commodity-Specific Trading Strategies (Metals, Energy) (CFA Level 1): Key Commodity Distinctions Between Base and Precious Metals, Base Metals, and Precious Metals. Key definitions, formulas, and exam tips.
• Geo-Political Tensions and Resource Nationalism
  Geo-Political Tensions and Resource Nationalism (CFA Level 1): Understanding Resource Nationalism, Key Drivers Behind Resource Nationalism, and Historical Context and Major Examples. Key definitions, formulas, and exam tips.
• Commodity Spread Trading and Arbitrage
  Commodity Spread Trading and Arbitrage (CFA Level 1): Major Types of Commodity Spreads, Inter-Commodity Spreads, and Crack Spread. Key definitions, formulas, and exam tips.
• Seasonality Analysis in Agriculture and Energy
  Seasonality Analysis in Agriculture and Energy (CFA Level 1): Seasonal Forces in Agriculture, Planting and Harvest Cycles, and Impact of Weather Events. Key definitions, formulas, and exam tips.
• Advanced Techniques in Commodity Factor Investing
  Advanced Techniques in Commodity Factor Investing (CFA Level 1): Understanding the Commodity Factor Universe, Exploring the Momentum Factor, and Key Characteristics of Momentum in Commodities. Key definitions, formulas, and exam tips.
• ESG Monitoring in Extractive Industries
  ESG Monitoring in Extractive Industries (CFA Level 1): Why ESG Matters in Extractive Industries, Key ESG Metrics for Extractive Operations, and Illustrative Table of ESG Metrics. Key definitions, formulas, and exam tips.