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Swaps OverviewBackground Swaps have increased both in variety and use over the last few years. They underpin many trading strategies and numerous investment products. While simple to those in detailed daily contact with Swaps, they appear confusing to those with less experience or to those without formal training. This course provides a fairly detailed overview of Swaps, what they are, how they are used and the major varieties. No prior knowledge is assumed of Swaps but a good general knowledge of securities is assumed.
Delegates
CPD Credit available
Content
Market Overview -Key users and uses. -ISDA -Interaction with related markets
Interest Rate Swaps -Definition of an interest rate swap -Floating versus fixed rate asset/liability -Cash flows over time -Quoting a swap price -Coupon, basis, asset, term, money market swaps
Uses of IR Swaps -Converting floating to fixed and vice versa -Arbitrage using swaps -Gaining access to markets -Increasing lending and reducing borrowing rates -Role of broker and intermediary
Currency Swaps -Definition of a currency swap -Types of currency swaps -Quoting a price -Use of Currency Swaps
Asset, DIFF, Circus, Cocktail Swaps Credit Default Swaps -Definition, Structure, Use -Definition, Structure, Use
Pricing and Valuation Overview -Review of time value of money -Discount functions -Defining price and value of a swap -NPV of fixed versus floating cash flows -Amortising, accreting, roller coaster swaps -Valuing a Swap Set by Futures Prices
Investment Education PLC |
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