- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Coaching Changes
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
1
Posted on 10/10/08 at 12:40 pm to Tiger JJ
are you referring to derivatives contracts on NYMEX and Basis trading for hedged gas/NGL's/Oil? If so, not sure what you mean by "pay as you go".....those contracts call for "credit assurances" and/or "margin calls" based on mark-to-market valuation of hedge gains/losses against the physical positions. I would suspect that CHK is "in the money" big on their hedges.....credit risk is the counterparties' risk in cash settlement on a monthly basis as the contracts expire.
Posted on 10/10/08 at 12:45 pm to TigerStuckinOkieland
Do they have any directly with the banks that are not exchange traded? I thought they did.
Cash settlement is only monthly for exchange traded instruments? You don't think it gets posted daily both ways?
Cash settlement is only monthly for exchange traded instruments? You don't think it gets posted daily both ways?
Posted on 10/10/08 at 12:46 pm to Ryan 11
quote:
Ouch, not to mention they have 0 cash.
until about 3-4 weeks from now when the first big cold front hits the NE and the NG prices start their annual winter escalation
Posted on 10/10/08 at 12:48 pm to Tiger JJ
it gets "posted daily" and margin calls and/or credit assurances required on a real-time/daily basis....but, settlement of these contracts are monthly, 3 business days prior to end of month.
Posted on 10/10/08 at 12:51 pm to TigerStuckinOkieland
To your point and mine, if credit requirements can't be met, the counterparty can require an immediate "unwinding" of the derivatives at current market values based on default language within the contract.
Then, it's a matter of that counterparty "finding cash" to settle.
Then, it's a matter of that counterparty "finding cash" to settle.
Posted on 10/10/08 at 12:52 pm to TigerStuckinOkieland
So if the exchange has to post for CHK, does it actually get wired to a different account, or is it still kept at the clearing firm? On the OTC stuff, if you have bilateral agreements, then you can call daily margin into your own account T + 1. If you take it off or take it to expiration, it's T + 3.
Posted on 10/10/08 at 1:08 pm to Tiger JJ
Not sure on your first question....I should know since I managed a trade floor for several years, but left some of those details to my traders/floor managers/accountants. Yes, I believe you are correct on the OTC agreements....much has changed since I left the arena just 3 years ago.....
now, solely in the midstream business, managing assets, but still marketing our tailgate products to the downstream markets and marketers....we are closely watching our counterparties, but are small enough to escape the big hits.......SemGroup being our only minor exposure.
now, solely in the midstream business, managing assets, but still marketing our tailgate products to the downstream markets and marketers....we are closely watching our counterparties, but are small enough to escape the big hits.......SemGroup being our only minor exposure.
Posted on 10/10/08 at 1:13 pm to TigerStuckinOkieland
CFTC and SEC changed the rules on much of this starting a couple of years ago based on some big hedge fund losses and focus on "market manipulation" issues....
I suspect that this crisis will weed out quickly any weak players still left in the O&G business. It's been a game for the big boys for at least the last 5 years.
I suspect that this crisis will weed out quickly any weak players still left in the O&G business. It's been a game for the big boys for at least the last 5 years.
Posted on 10/13/08 at 12:31 pm to Tiger JJ
thx JT, too bad didn't pick some up at 13
Posted on 10/13/08 at 2:44 pm to Ryan 11
CHK has been a moody little bitch today. its dragging the rest of my porfolio
Posted on 10/13/08 at 2:46 pm to mburne4
quote:
CHK has been a moody little bitch today. its dragging the rest of my porfolio
its up 20%. Is CHK dragging it up?
This post was edited on 10/13/08 at 2:47 pm
Posted on 10/13/08 at 2:48 pm to C
its up 3% for the day. and its been diving up and down for the better part of an hour and a half
Posted on 10/13/08 at 2:51 pm to mburne4
quote:
its up 3% for the day
??? I'm showing it around $20.
Posted on 10/13/08 at 2:53 pm to C
20.16 right now.
and yeah im an idiot. was wathing my net change thought i was looking at percentage.
and yeah im an idiot. was wathing my net change thought i was looking at percentage.
Posted on 10/14/08 at 7:11 pm to mburne4
I bought Chesapeake at $23. Hope we have good earnings in the winter months.
Posted on 10/14/08 at 7:47 pm to Tiger JJ
The CEO of Chesapeake sold all of his stock, why would he have done that? Name is Aubrey McClendon. This is in our local paper here in Arkansas as Chesapeake. The sale was disclosed Saturday.
Posted on 10/14/08 at 7:52 pm to riverboat
quote:
The CEO of Chesapeake sold all of his stock, why would he have done that? Name is Aubrey McClendon. This is in our local paper here in Arkansas as Chesapeake. The sale was disclosed Saturday.
This was actually discussed last week, here's the link for you:
LINK
Posted on 10/15/08 at 2:07 pm to Joe
Well there go the gains for Chesapeake, down 20%+ for the day. And I thought I got a steal at $23. More bad news, cash outlook for next year was lowered.
Posted on 10/15/08 at 3:18 pm to LSUtoOmaha
yeah they worked me over pretty bad today. im just glad i didnt get in at 23 like you. i was in at 20
Page 2 of 3
Popular
Back to top
Follow TigerDroppings for LSU Football News