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Course Modules
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1. the basics
- What is a commodity? Where do they come from? The main players and price drivers
- Spot and forward prices; interpreting the forward curve
- Combining physical and derivatives
- Identifying suitable derivatives
- Cash and physically settled forwards
- Exchange traded and OTC markets
- Commodity swaps, Asian options
- Central clearing
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2. metals
- Commodity or currency
- Good delivery, allocated and unallocated metal
- Price references, lease rates and borrowing costs
- The LME, CME and SHFE
- Warehousing and delivery
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3. energy
- Crude classifications and pricing
- Distillates, refining, cracks and diffs
- Exchange for physical
- Natural gas, LNG and the impact of shale
- Physical assessments: Platts, Heren
- Futures and indexed pricing
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4. agriculture
- Grains and oilseeds
- Sugar, cocoa, coffee and cotton
- Agflation, biofuels, seasonality
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5. bulks
- Coal: Thermal and coking
- Steel
- Iron ore
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6. strategies
- Using forwards, swaps, loans and prepays
- Spreads: cracks, diffs and the crush
- Options and swing
- Protection and commitments
- Understanding credit consequences
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7. financing
- Early stage funding, royalties and streaming
- Reserve-based and corporate lending
- Fine-tuning the hedge
- Key aspects of physical contracts
- Determining the borrowing entity and protecting the value of collateral
- Tripartite agreements
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8. investment
- Why invest in commodities?
- Commodity indices, exchange traded products, commodity linked notes
- Interpreting investor activity and why it matters
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9. asessing risk
- Market, basis, rollover and model risk
- Operational considerations
- Avoiding disasters, questions to ask