Chances Are - Once Stuck in the Doldrums, Weather Derivatives May Have the Wind at Their Back

25/09/2025 11 min
Chances Are - Once Stuck in the Doldrums, Weather Derivatives May Have the Wind at Their Back

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Episode Synopsis

The popularity of weather derivatives has ebbed and flowed since their introduction in the late 1990s but trading activity has rebounded in recent years as the trading community has increasingly begun to reassess the need to hedge weather-related risks — everything from high temperatures and rainfall levels to power prices and cooling demand. In today’s RBN blog, we examine the role of weather derivatives, how they are used to hedge risk, and why they may be becoming increasingly important to the energy industry. 

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