Natural Resources Flashcards
1
Q
What are “Timberland Investment Management Organizations”?
A
Entities that support institutional investors by managing their investments in timberland by analyzing and acquiring suitable timberland holdings.
2
Q
What are “Separately-Managed Accounts”?
A
Accounts that are managed in accordance with an investor’s specific preference and risk tolerance.
3
Q
What is “Backwardation”?
A
A downward-sloping, or inverted, forward curve in a futures market.
4
Q
What is “Contango”?
A
Refers to spot price below forward price in a futures market.
5
Q
What are some causes of “Contango”?
A
- Storage Costs
- Carrying Costs
- Supply Expectations
- Speculative Behavior
6
Q
What are some causes of “Backwardation”?
A
- High immediate demand
- Expectation for oversupply in the future
- Seasonality
- Inventory effects
