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
- 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