heatwave

The California Senate is currently hearing readings of a new bill focused on legislation for extreme heat conditions, part of which includes a push to identify how heat-indices could be used as parametric triggers, including for catastrophe bonds.

Environmental Finance, the monthly magazine covering the impact of environmental issues on lending, insurance, investment and trading decisions, have published an interesting news article on the weather derivatives market today. The article shows that the recent hot weather across the U.S., which resulted in the fourth warmest July on record, has impacted weather derivatives trading […]

We wrote last week that some weather traders are taking advantage of the recent heat wave across the U.S. to profit from making the right choices with their weather derivative contract purchases. The high temperatures caused some weather derivative contract prices to soar on the Chicago Mercantile Exchange (CME) allowing traders to cash in.

The U.S. has been suffering from unusually high temperatures, dry weather and heatwaves across many regions in recent days and weeks. High temperatures mean weather traders are busy as companies and traders seek to hedge their weather risks using instruments such as weather derivatives.

This summers extreme heatwave in Russia which resulted in widespread fires and a serious drought across much of the country has caused considerable losses for individuals and the public/private sectors. Drought destroyed 17% of the available crop area in Russia and the fires spread over 200,000 hectares causing widespread damage and loss of homes and […]