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Quantitative Finance · Glossary

What is Asset-backed trading?

Definition 22.3 Strategies II: Volatility, Relative Value, Macro and the Bank Desks · Chapter 22 — Storage, Transport and Physical Optionality

Asset-backed trading is trading around physical assets that the firm owns or leases (storage, transport capacity, generation, cargoes), valuing them as options and monetising their flexibility with hedges in the forward and options markets.

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