1. Financial Instruments Alyona Lamash EXTENT February 2011 2. Contents Introduction to Financial Instruments and Markets Types of Financial Markets Exchange vs. OTC Futures…

Slide 11 Interest Rate Swaps Slide 2 2 Interest Rate Swaps: Origin  Today there exist an interest rate swap market where trillions of dollars (in notional principal) of…

XIV.1 CHAPTER XIV SWAPS Swaps markets have rapidly developed into a huge market. From their initial inception in 1979, notional principal outstanding has grown from virtually…

Slide 1 Risk Management Hedging with Swaps 1 Copyright 2014 Diane Scott Docking Slide 2 Terminology, Conventions and Market Quotes Fixed-Rate payer Pays fixed rate in the…

Slide 1 Swaps Chapter 26 Slide 2 Swaps  CBs and IBs are major participants –dealers –traders –users  regulatory concerns regarding credit risk exposure  five…

MBF1243 Derivatives L6: Swaps Nature of Swaps • A swap is an agreement to exchange of payments at specified future times according to certain specified rules • A swap…