Corporate Solutions

Interest Rate Derivatives

MAPS - Market and Product Summary

  • Market History and Development of the Markets and Exchanges
  • The contracts and Financial Trade Types – What are they?
  • Interest Rate Swaps
  • Forward Rate Agreements
  • Caps, Floors, and Collars
  • Ratchet Notes
  • Range Accruals
  • One Look Digital Note
  • Callable Zero Coupon Note
  • Callable Inverse Floater
  • Target Redemption Note
  • Snowball
  • Power Reverse Dual
  • Market participants and Roles
  • Outline of TRACE, USE, and OPS
  • Utilities and service providers
  • Mainstream systems employed
  • Future Market Developments

TRACE - Trade Risks & Contract Economics

  • Reviewing the trade types, their economic attributes and how they work.
  • Examining the Market Risk, Liquidity and Leverage factors
  • Discussing the Credit Risk implications

USE - Understanding Strategies Employed

  • How they are used and the strategies
  • The different counterparties using the products
  • Examining the performance as investments or hedges.

OPS - Operational Processes

  • Review of the Transactional Life Cycle
  • Trade Capture, Confirmation, Documentation
  • Settlements, Pricing and Valuation.
  • Operational Risk and Controls