Introduction to Commodities and Commodity Derivatives (2024 Level II CFA® Exam – Alternative –LM 1)

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Topic 8 – Alternative Investments
Module 5 – Introduction to Commodities and Commodity Derivatives
0:00 Introduction and Learning Outcome Statements
0:21 LOS: Compare characteristics of commodity sectors.
5:41 LOS: Compare the life cycle of commodity sectors from production through trading or consumption.
9:29 LOS: Contrast the valuation of commodities with the valuation of equities and bonds.
12:42 LOS: Describe types of participants in commodity futures markets.
18:45 LOS: Analyze the relationship between spot prices and futures prices in markets in contango and markets in backwardation.
24:20 LOS: Compare theories of commodity futures returns.
32:00 LOS: Describe, calculate and interpret the components of total return for a fully collateralized commodity futures contract.
35:46 LOS: Contrast roll return in markets in contango and markets in backwardation.
36:21 LOS: Describe how commodity swaps are used to obtain or modify exposure to commodities.
44:59 LOS: Describe how the construction of commodity indexes affects index returns.