Weather derivatives.

[Debaser82]

In an Opalesque video interview, Nephila Capital's Barney Schauble discusses how some hedge funds have now begun focusing on weather derivatives as an investment class. Counterparties such as utilities, farming conglomerates, individual companies and insurance companies are essentially looking to hedge their exposure through weather derivatives, and funds have become a sophisticated partner in providing this protection.

http://www.opalesque.tv/youtube/Barney_Schauble/1


So, when will there be 300% ETF's on it being sunny in NY next weekend?

 

[Fireplace]

I had dinner with a friend last night in Manhattan, coincidentally he mentioned a friend of a friend who trades weather futures.....makes an ungodly amount of money.

 

[mickmak]

hm...

Sell lots of sun shine for Illinois over June. Then get a whole bunch of planes to seed the clouds. I am sure the profit from weather contracts offsets the seeding cost.