Banks, Pension Funds to Shrink 2013 CO2’s Premium: Barcap
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New lenders in the European Union carbon market including banks and pension funds may narrow the premium of 2013 futures compared with those for 2012, said Barclays Plc.
Carbon permit spreads have widened to 6 to 7 percent above the Euribor rate, Trevor Sikorski, an analyst in London for Barclays Capital, said today in an e-mailed research note. “As more new potential lenders enter the market, we expect some of the super contango that is now present along the curve to begin to be unwound,” he said.