Comments on: Want to Invest in the Weather? http://www.mebanefaber.com/2007/07/11/want-to-invest-in-the-weather/ Engineering Targeted Returns and Risk Sat, 20 Mar 2010 21:13:21 -0500 http://wordpress.org/?v=2.8.2 hourly 1 By: Sean http://www.mebanefaber.com/2007/07/11/want-to-invest-in-the-weather/comment-page-1/#comment-1410 Sean Wed, 18 Jul 2007 16:44:00 +0000 http://www.mebanefaber.com/2007/07/11/want-to-invest-in-the-weather/#comment-1410 George, if you haven't already you may want to take a look at <a HREF="www.weatherbill.com" REL="nofollow">WeatherBill</a> George, if you haven’t already you may want to take a look at WeatherBill

]]> By: seadog http://www.mebanefaber.com/2007/07/11/want-to-invest-in-the-weather/comment-page-1/#comment-1401 seadog Fri, 13 Jul 2007 15:04:00 +0000 http://www.mebanefaber.com/2007/07/11/want-to-invest-in-the-weather/#comment-1401 Short football scores!! Short football scores!!

]]> By: Doug http://www.mebanefaber.com/2007/07/11/want-to-invest-in-the-weather/comment-page-1/#comment-1400 Doug Fri, 13 Jul 2007 12:38:00 +0000 http://www.mebanefaber.com/2007/07/11/want-to-invest-in-the-weather/#comment-1400 Emissions credits are growing very fast. SO2 and NOx in the U.S. and CO2 in Europe are all heavily-traded. The credits somewhat mimic the power market, but still have some diversification benefit. Emissions credits are growing very fast. SO2 and NOx in the U.S. and CO2 in Europe are all heavily-traded. The credits somewhat mimic the power market, but still have some diversification benefit.

]]> By: George Black http://www.mebanefaber.com/2007/07/11/want-to-invest-in-the-weather/comment-page-1/#comment-1399 George Black Thu, 12 Jul 2007 20:11:00 +0000 http://www.mebanefaber.com/2007/07/11/want-to-invest-in-the-weather/#comment-1399 I have a great interest in following weather derivatives, or at least in knowing who has exposure to them. I have a non-trivial amount of hurricane exposure due to owning property in the New Orleans French Quarter. <br/><br/>Property casualty insurance rates are sky-high here. I am druelling over the possiblility of hedging some of my exposure in the financial markets, or at least not making the mistake of 'doubling down' by also having investments in entities with lots of hurricane risk (BRK)<br/><br/>Some problems with the hedge using CME futures or the like....<br/><br/>1. No exact substitute for my house vs. damage to the entire region.<br/>2. No coverage for non-weather events such as fire/theft (can be solved with conventional insurance)<br/>3. Notional amounts required to trade at good prices are much larger than I need. I have a great interest in following weather derivatives, or at least in knowing who has exposure to them. I have a non-trivial amount of hurricane exposure due to owning property in the New Orleans French Quarter.

Property casualty insurance rates are sky-high here. I am druelling over the possiblility of hedging some of my exposure in the financial markets, or at least not making the mistake of ‘doubling down’ by also having investments in entities with lots of hurricane risk (BRK)

Some problems with the hedge using CME futures or the like….

1. No exact substitute for my house vs. damage to the entire region.
2. No coverage for non-weather events such as fire/theft (can be solved with conventional insurance)
3. Notional amounts required to trade at good prices are much larger than I need.

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