November 20, 2013
Swiss Derivatives Review – OTC weather derivatives

Despite impressive advances in technology, nobody can control the weather. We can predict the weather short-term, but cannot prevent it from happening. This frustrates many CFOs and shareholders of companies whose bottom line is impacted by weather. Since investors are looking for stable returns, weather derivatives were introduced more than a decade ago as risk management products to reduce financial risk associated with adverse or unseasonal weather conditions.