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April 30, 2024
9 Free Financial Modeling Lessons
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I would not say power and natty are hot right now but banks are putting resources into those products. Maybe it is hot to current college kids but its been around a long time. Natty is popular cause of Arnold and Hunter. Emissions look to be a growning space in the U.S
I would do crude and products only if you are with a group that has a lot of physical exposure to the business e.g. Phibro, Aron, MS, big oil companies, certain independent traders, unless you want to be making decisions purely on technicals and information from places like PIRA or the EIA (not saying that it isn't lucrative , you just can't be as big a player in those markets). It's a much harder business to enter into than gas and power, whose companies now are a dime a dozen.
As far as the future, emissions seem interesting. So does gas and power in Europe. The market for gas on the physical side there seems very interesting...
I'd trade crack spreads. Most interesting space in my opinion. Very research-heavy, but lots of alpha there. More interesting than throwing CL back and forth.
I'd trade middle distillates, cracks or options. There's real market-making opportunity there and a lot more interesting than crude. Emissions is actually not very interesting to trade, it sounds a lot sexier than it is. It tracks oil and nat gas pretty closely and doesn't really function like its own product. It also has a hell of a lot of policy risk that's difficult to forecast.
(I'm an ex-commodities sales/structurer)
Can anybody direct me to a good website to learn about real time power trading (strategy, terms, etc.)? I have an interview coming up, and really don't want to sound like a moron.
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