Introduction
6.1 Swaps Chapter 6 6.2 Swaps • Contracts that can be constructed with multiple forward contracts • An agreement to exchange cash flows at specified future times according to certain specified rules •...
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Chapter 14 Interest Rate and Currency Swaps Interest Rate Risk • All firms – domestic or multinational, small or large, leveraged, or unleveraged – are sensitive to interest rate movements in one way...
View ArticleDevelopment of the Swaps Market
Development of the Swaps Market Joseph Di PeriStephen Asai Outline Discussion of currency swap Brief review of an interest rate swap Growth of secondary market Other types of swaps Financial...
View ArticleP A R T O N E THE INTERNATIONAL FINANCIAL ENVIRONMENT
Currency and Interest 10 Rate Swaps Chapter Ten Chapter Objective:This chapter discusses currency and interest rate swaps, which are relatively new instruments for hedging long-term interest rate risk...
View ArticleFinancial Risk Management
Financial Risk Management Zvi Wiener Following P. Jorion, Financial Risk Manager Handbook http://pluto.huji.ac.il/~mswiener/zvi.html FRM 972-2-588-3049 Swaps Zvi Wiener 02-588-3049...
View ArticleChapter 12: Swaps
Chapter 12: Swaps I once had to explain to my father that the bank didn’t really make its money taking deposits and lending out money to poor folk so they could buy houses. I explained that the bank...
View ArticlePricing and Valuing Swaps
Chapter 13 Pricing and Valuing Swaps • Pricing a Swap: Calculating the “fair fixed rate.”• The idea: Calculate a fixed rate whereby market participants are indifferent between paying (receiving) this...
View ArticleQuantifying interest rate risk
Floating rate notes • Coupon payments not fixed over life of the note• Coupon payments based on some variable interest rate easily observable in the market • Usually, payment-in-arrears, i.e., each...
View ArticleInterest Rate Swaps
Chapter 16 Interest Rate Swaps Interest Rate Swaps: Origin • The Student Loan Marketing Association (Sallie Mae) was established in 1970 to develop a secondary market for student loans. • Sallie Mae...
View ArticleINTERNATIONAL FINANCING AND INTERNATIONAL FINANCIAL MARKETS
CHAPTER9 INTERNAT A IONAL FINANCING AND INTERNAT A IONAL FINANCIAL MARKETS INTERNATIONAL FINANCING AND INTERNATIONAL FINANCIAL MARKETS CHAPTER OVERVIEW: I. CORPORATE SOURCES AND USES OF FUNDS II....
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