Course Outline
 

Course Title

  

Swaps

Course Category

    Online
Target Audience  

This course is designed for institutional investors who wish to gain a complete understanding of th fundamentals of interest rate swaps, their use and valuation.

Continuing Education

  

Professional Development:
CA, CGA, CMA, IDA

7 MX CE Credits

Prerequistes

   Participants must have a basic understanding of financial markets, fixed income securities and derivatives.
Objectives   Upon completion of this course, participants will have a complete understanding of the mechanics of swap agreements, and will be able to calculate the swap rate, and to apply basic swap hedging and speculation strategies.
Subject by level  

Topics  

Introduction

Interest Rate Swaps Mechanics

Using Interest Rate Swaps
-  Heding a Floating Rate Liability
-  Taking a view on the the Interest Rate Curve Increasing
-  Assets Swaps - Converting a Set of Cash flows

Interpretations of Interest Rate Swaps
-  A Swap as the Market's Expectations for Futures Interest Rates
-  A Swap as a Series of Forward or Futures Contracts
-  A Swap as an Exchange of a Floating Rate Bond for a Fixed Rate Bond
-  The comparative advantage argument

Pricing of Interest Rate Swaps
-  The mathematics of Swap Pricing.
-  Using the Expected Forward Rates to calculate the Swap Rate.
-  A Swap as a Series of Interest Rate Futures Contracts or Forwards Contracts
-  Counterparty Risk and Swap Pricing

Hedging a Swap Position
-  Using Futures Contracts
-  The Present Value of a Basis Point - PV01
-  Dealer Risk

Currency Swaps

Swap Extension

Self test

 
Duration   This online course is equivalent to an in-class course with a duration of 7 hours. Online courses are self-paced, and the time necessary to complete each course will vary with each student
Time to comple the course   Six months (user account can be deactivated after this period)
Date   Available now
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