Investment

Manage weather and climate risk to improve investment performance

If you’re an investment banker structuring Cat Bonds or placing shorter-term "live-Cat" traded insurance-linked securities (ILS) or transacting in the weather derivatives market, Atmospheric and Environmental Research (AER) can help you improve the performance of your financial instruments by leveraging our:

  • Accurate, detailed, location-specific weather analytics
  • Expertise in weather and climate monitoring and numerical weather prediction
  • Custom weather data and algorithm services

Traders and managers of energy mutual funds and hedge funds are also using AER’s seasonal forecasts, environmental research, climate models, and weather and hurricane forecasts to optimize their investment strategies. For example:

Capital Markets

  • AER helps investment bankers improve performance through:
    • Customized, fully objective Catastrophe event definitions
    • Historical and real-time monitoring of parametric indices
    • New techniques to transfer risk in emerging markets or for emerging risks

Fund Managers

Energy Traders

  • Energy traders can use AER’s weather forecasts to gauge the impact of heating demand on the natural gas, oil and coal markets.

Commodity Traders

  • Agriculture-sensitive corporations and commodity traders can use AER products and services to monitor climate, hydrology and weather impacts on crop yields and livestock prices.
  • AER’s data can help traders better analyze and value futures contracts based on the Chicago Mercantile Exchange’s Hurricane Index (CHI).

Overview of all of AER’s products, solutions and consulting services.