The themes of this product are:
- The fundamentals of swaps contracts
- The different types of swaps and its variants
- Structuring swaps based on requirement
- Understanding pricing and valuation concepts of swaps
Swap transactions which involve exchange of one set of cash flows for another, represent one of the cornerstones of derivatives trading. Since its inception, the swaps market has experienced phenomenal growth (over US$ 3 trillion in size today). Financial institutions and corporate treasuries are increasingly employing swaps.
As financial institutions and corporate treasuries increasingly employ swaps and the market experiences further growth in size and number, a professional guide to understanding swaps is essential for the various participants. This is an excellent product for anyone from management, trainee traders, back office support, accountants or corporate treasurers seeking to use swaps in asset management. It will help those with an interest in swaps to understand the variety and complexity of today's market.
After completing this course you will be conversant with:
- The mechanism of a generic swap and the concepts and terminologies used in swaps
- Different types of swaps and the motivation behind employing them
- The variants in the basic structure of swaps and their pricing and valuation concepts
Every professional involved in the global financial services industry (as a provider, user, regulator or advisor of product/services, marketplace/exchange) would benefit from our innovative learning solutions.
Multi-lateral Financial Institutions
Course Level and Number of Courses:
Basic & Intermediate Level
Library of 7 Courses
Dynamic, Interactive e-learning
Familiarity with basic financial concepts
Time taken to complete each Course: Two - Three hours
1. Swaps – Fundamentals
What are swaps?
Elements of a swap
Participation by Financial Intermediaries
Types of Swaps
Pricing and Valuation Concepts
Risks associated with swaps
2. Interest Rate Swaps
What is an Interest Rate Swap?
Plain vanilla Interest Rate Swaps
Interpreting swap quotes
Pricing and Valuation of Interest rate swaps
3. Currency Swaps
Introduction to currency swaps
Mechanism of a Currency swap
Pricing and Valuation of Currency swap
Currency Vs. Foreign exchange swaps
4. Commodity Swaps
What is a commodity swap?
Plain vanilla commodity swaps
Pricing commodity swaps
Commodity swaps Vs. Futures contracts
Credit risk in commodity swaps
5. Equity Swaps
A Plain Vanilla Equity Swap
A Single Currency Equity Swap with a fixed notional principal
Cross-currency Equity Swaps
What do Equity Swaps do?
Variations in the basic structure
6. Interest Rate Swap Variants
Delayed- rate-setting and Rate-Capped Swaps
Draw down Swaps
Uses of Swaptions
Global Best Practices