Commodities: Markets, Performance, and Strategies provides a comprehensive view of commodity markets by describing and analyzing historical commodity performance, vehicles for investing in commodities, portfolio strategies, and current topics. It begins with the basics of commodity markets and various investment vehicles. The book then highlights the unique risk and return profiles of commodity investments, along with the dangers from mismanaged risk practices. The book also provides important insights into recent developments, including high frequency trading, financialization, and the emergence of virtual currencies as commodities. Readers of Commodities: Markets, Performance, and Strategies can gain an in-depth understanding about the multiple dimensions of commodity investing from experts from around the world.
Commodity markets can be accessed with products that create unique risk and return dynamics for investors worldwide. The authors provide insights in a range of areas, from the economics of supply and demand for individual physical commodities through the financial products used to gain exposure to commodities. The book balances useful practical advice on commodity exposure while exposing the reader to various pitfalls inherent in these markets. Readers interested in a basic understanding will benefit as will those looking for more in-depth presentations of specific areas within commodity markets. Overall, Commodities: Markets, Performance, and Strategies provides a fresh look at the myriad dimensions of investing in these globally important markets.
Contents
Acknowledgments
About the Editors
About the Contributors
List of Figures
List of Tables
Abbreviations
Part One BACKGROUND
1. Commodities: An Overview
H. Kent Baker, Greg Filbeck, and Jeffrey H. Harris
2. The Economics of Commodities and Commodity Markets
Florian Ielpo
3. Commodity Exchanges and Regulation
Jerry W. Markham
4. Behavioral Aspects of Commodity Markets
John R. Nofsinger, Pattanaporn Chatjuthamard, and Xu Dai
5. Commodity Derivatives
Neil C. Schofield
6. Fundamentals and Commodity Prices
Michael S. Haigh
Part Two PHYSICAL COMMODITIES
7. Physical Commodities
Xiaohu Deng, Seow Eng-Ong, and Andrew C. Spieler
8. Agricultural
Nicole Moran and Kelsey Syvrud
9. Energy
Michael A. Penick and Lynn Riggs
10. Livestock
Xiaohu Deng, Andrew C. Spieler, and Desmond Tsang
11. Metals
Greg Leonard and Chanel O'Neill
Part Three METHODS TO INVEST IN COMMODITIES
12 Commodity Trading Advisors and Managed Futures
Koray Simsek and Halil Kiymaz
13. Commodity Exchange-Traded Funds
Christopher Milliken, Ehsan Nikbakht, and Andrew C. Spieler
14. Commodity Mutual Funds
Gustavo Camilo, Janko Cizel, and Paul Zurek
Part Four PERFORMANCE OF COMMODITIES
15. Pricing of Futures Contracts
Timothy A. Krause
16. Commodity Return Characteristics
Dianna Preece
17. Issues in Commodity Benchmarking Performance
Aaron Filbeck
18. Volatility Transmission across Commodity Futures Markets
Frankie Ho-Chi Chau and Rataporn Deesomsak
Part Five STRATEGIES AND PORTFOLIO MANAGEMENT
19. Commodities in International and Emerging Markets
Kamal Smimou
20. Commodity Trading Strategies, Common Mistakes, and Catastrophic Blowups
Hilary Till, Joseph Eagleeye, and Richard Heckinger
21. Asset Allocation Strategies and Commodities
Claudio Boido
22. Food Prices and Food Price Volatility: Strategies for Extending the Reach of Risk Markets
Donald F. Larson
Part Six ISSUES INVOLVING COMMODITIES
23. High Frequency Trading of Commodities
Raymond P. H. Fishe and Aaron D. Smith
24. Energy Risk Management
Thomas Barkley, Mingwei (Max) Liang, and Andrew C. Spieler
25. Financialization of Commodity Markets
Kyle J. Putnam and Ramesh Adhikari
26. Virtual Currencies as Commodities
Lamia Chourou, Samir Saadi, and Azizah Aljohani
27. Research Issues in Commodities and Commodity Markets
Scott Mixon
28. Future of Commodity Markets and Investments
Hunter M. Holzhauer
Discussion Questions and Answers
Index
