Risk Services
Forsent Brokers risk analysis services are included to all deals that are transacted with Forsent Brokers to give our professional view concerning the market and deal. T
his way we want to mitigate the uncertainties in the market . By giving a fresh and professional view on the markets risks that concerns the deal construction.
The important topics that we see for the deal construction given the nature of the transactions are:
§ Market
trend analysis giving perspective concerning the long term and medium term
market price cycles that concerns the contractual maturity
Long term market cycles analysis:
Estimations of markets:
§ Market risk analysis analyzing the commodity price
movements that are interrelated to the commodity in question to gain knowledge
concerning the tendency for market to have short term shocks that can change
the momentum of the market. Primarily we concentrate on the “fat tails” of the
price distributions to give indication
of the tendency to have large price swings and the asymmetries of the price
distributions to have indication of the buyers (short party) and sellers (long
party) risks with the price movements in the shorter run of transactions
Price characteristics and tail risk analysis:
Thus the following can be seen as key ingredients and targets for our risk analysis services:
§ To gain understanding of the markets movements and its
risks
§ Empirics not theory to gain knowledge of the real
market randomness and thus the risk
§ Gain knowledge about the implications on the contracting
§ Give fresh perspective concerning the markets
Price path simulations:
Price path simulations: