Course 17 of 20 · Biofuels and SAF Desk Academy

Cross-Hedging & Margin Protection

Stage E, Portfolio protection and integrated practice. Level 8 of 10.

Proxy hedge selection, basis and correlation risk measurement, and margin protection across a combined physical and entitlement book.

119 chapters · 11 modules · every chapter one 8 to 10 minute explainer · builds on: Course 10, Course 13, Course 14

Enrol or enquire See the 119 chapters
How a chapter is delivered

One chapter is one idea taken to the point of use

Each chapter covers one idea to the point where you can use it, and comes two ways: a narrated explainer, and a deep dive audio discussion of around thirty minutes that works the same material at depth.

Self-paced throughout, and the same chapters can be taught as a cohort. Chapters run in order: each one assumes only what the chapters before it taught, and capability belonging to a later course is named and deferred rather than half-covered.

Curriculum

11 modules · 119 chapters

Open any module for its full chapter list, in teaching order.

M0 A Book With Two Halves and No Matching Contract Ch 1-10
  1. Why a Renewable Fuels Book Resists Instrument-for-Instrument Cover
  2. The Molecule Half and the Entitlement Half
  3. Substitute Cover as the Working Assumption
  4. What Substitute Cover Honestly Promises
  5. Listing the Unpriced Legs Across the Combined Book
  6. The Four Mismatches This Desk Starts With
  7. Residual Basis as a Position Somebody Owns
  8. Two Meanings of Margin on One Desk
  9. Who Carries the Entitlement Basis When Nobody Claims It
  10. How This Material Is Sequenced
M1 What Actually Trades, and What Does Not Ch 11-21
  1. The Contracts a Renewable Fuels Desk Can Genuinely Transact
  2. The Vegetable Oil Complex as a Hedging Venue
  3. Distillate Contracts Standing In for a Renewable Fuel
  4. Published Assessments That Are Not Tradable Contracts
  5. How Compliance Units Actually Change Hands
  6. Liquidity by Tenor Across the Working Set
  7. Bid-Offer Width as the Price of Entering at All
  8. Who Quotes the Other Side on This Desk
  9. Pound-Denominated Lots Against a Tonne-Denominated Parcel
  10. Cleared, Bilateral or Broked, and What Each Costs
  11. Freight and Storage Exposure Named and Left Alone
M2 Choosing a Substitute for the Feedstock Half Ch 22-32
  1. The Waste Feedstock Nothing Settles Against
  2. Why a Crop Oil Contract Is Reached For First
  3. Three Tests a Candidate Feedstock Proxy Must Pass
  4. Soybean Oil Against a Tallow Purchase
  5. Rapeseed and Palm as Alternative References
  6. Tonnes, Pounds and the Unit Translation
  7. Matching the Assessment Days to the Pricing Days
  8. Hedging a Feedstock Purchase Not Yet Nominated
  9. A Feedstock Hedge Sized and Placed, Worked
  10. When the Deeper Contract Beats the Closer One
  11. What Survives a Completed Feedstock Hedge
M3 Choosing a Substitute for the Finished Fuel Ch 33-42
  1. The Unsold Fuel Position Stated From the Right Seat
  2. Covering Renewable Diesel With a Distillate Contract
  3. The Premium Over the Fossil Reference as the Real Exposure
  4. Jet Fuel Cover for a Sustainable Aviation Fuel Position
  5. Why the Aviation Premium Behaves Unlike the Diesel One
  6. Hedging Ethanol Exposure Inside a Wider Book
  7. Fatty Acid Methyl Ester and Its Grade Spread
  8. A Dollar Contract Covering a Euro-Denominated Sale
  9. A Finished Fuel Hedge Sized and Placed, Worked
  10. What Survives a Completed Product Hedge
M4 Covering the Entitlement Half Ch 43-53
  1. The Compliance Unit Seen as a Hedgeable Object
  2. The Obligated Buyer Is Short Units and the Generator Is Long
  3. Forward Cover Without a Published Curve
  4. Vintage as a Reference in Its Own Right
  5. Covering a Volumetric Credit Position
  6. Covering an Intensity-Based Credit Position
  7. Using a Fuel Contract as a Substitute for a Credit
  8. The Blend Economics Argument and Its Assumptions
  9. A Position Spanning Two Compliance Regimes
  10. What the Entitlement Hedge Leaves Standing
  11. A Credit Position Covered and Reported, Worked
M5 Sizing the Gap a Substitute Leaves Ch 54-64
  1. Naming the Gap: Assessment Minus Contract
  2. Assembling a Difference History Nobody Publishes
  3. Cleaning the Series Before Trusting It
  4. How the Waste Feedstock Premium Has Behaved
  5. How the Renewable Product Premium Has Behaved
  6. Turning a Difference Range Into Money per Tonne
  7. Scaling the Figure to a Production Year
  8. Estimating a Cover Tonnage From the Record
  9. Why a Fitted Volume Is Evidence Rather Than an Answer
  10. Pricing Retained Basis Into the Quoted Offer
  11. The Page That Shows What the Desk Still Carries
M6 The Relationship a Substitute Depends On Ch 65-75
  1. The Tendency a Cross-Market Hedge Is Betting On
  2. Measuring Co-Movement Between an Assessment and a Contract
  3. Why the Answer Moves With the Window Chosen
  4. Settled Periods and the Confidence They Manufacture
  5. What Breaks the Feedstock Relationship
  6. What Breaks the Finished Fuel Relationship
  7. A Decoupling Episode Traced Through the Cash
  8. Stressing the Difference Rather Than the Level
  9. Capping Difference Risk Reference by Reference
  10. Early Warnings That a Reference Has Stopped Tracking
  11. Moving Live Cover to a Different Reference
M7 Protecting the Margin Rather Than the Legs Ch 76-86
  1. The Production Margin Is the Position
  2. Locking a Margin With Two Substitutes at Once
  3. How Covering One Leg Alone Can Raise Risk
  4. Hedging the Input-to-Output Spread Directly
  5. Where the Entitlement Leg Sits in the Margin Lock
  6. When the Lock Cannot Be Completed
  7. The Negative Margin No Hedge Will Rescue
  8. Partial Cover Recorded as the View It Is
  9. Cover Sized Above the Exposure
  10. Option-Style Protection on a Production Margin
  11. A Margin Lock Assembled and Judged
M8 A Quantity That Will Not Stay Still Ch 87-96
  1. Cover Placed Before the Intensity Score Is Confirmed
  2. A Feedstock Switch That Moves the Unit Count
  3. Hedging a Conversion Yield Not Yet Observed
  4. The Tolerance Band on a Feedstock Supply Call
  5. Rebalancing When the Production Plan Changes
  6. Tonnes That Stopped Qualifying, and the Cover Left Behind
  7. The Orphaned Unit Position
  8. Excess Cover After a Downgraded Run
  9. Hedge Response to a Rejected Consignment
  10. The Quantity No Cover Can Follow
M9 The Cash a Correct Hedge Demands Ch 97-108
  1. Why a Working Substitute Hedge Reports a Loss
  2. Daily Paper Settlement Against a Monthly Fuel Invoice
  3. Variation Margin While the Premium Sits in a Tank
  4. The Deposit a Substitute Position Requires to Exist
  5. Collateral Calls on an Uncleared Substitute Position
  6. The Distillate Leg Calls Cash While the Premium Falls Away
  7. The Entitlement That Will Not Serve as Collateral
  8. Forecasting the Cash Before the Cover Is Placed
  9. Cover Closed by Cash Pressure Rather Than Judgement
  10. A Cover Ceiling Set by the Headroom the Facility Leaves
  11. Accounting to the Lender for a Correct Hedge Loss
  12. Why the Reported Result Diverges From the Protected Margin
M10 A Combined Book Covered, and the Residual Stated Ch 109-119
  1. The Combined Book Case, Part One: Reading the Exposure
  2. The Combined Book Case, Part Two: Offsets Before Instruments
  3. The Combined Book Case, Part Three: Choosing Each Substitute
  4. The Combined Book Case, Part Four: A Quarter of Movement
  5. The Combined Book Case, Part Five: The Cash Path
  6. The Combined Book Case, Part Six: The Residual Stated
  7. Reviewing a Cover Decision Without Hindsight
  8. Writing the Cover Mandate for a Renewable Fuels Book
  9. The Simplifications This Material Used, and What Breaks Them
  10. What Cross-Hedging Cannot Do
  11. Where the Covered Book Goes Next

The brochure gives each of these 119 chapters a paragraph on what it covers and what you can do once you have worked through it.

This is course 17 of twenty

It stands alone, and it is also the entry point to the Biofuels and SAF Desk Academy pathway.

Enrol or enquire See the whole pathway