Financial Derivatives: Introduction to Interest Rate Swaps

Financial Derivatives: Introduction to Interest Rate Swaps

This course is beneficial for those who are seeking careers in risk management/portfolio management/treasury/derivatives trading. In simple and intuitive language the concepts are broken down to help you understand what an interest rate swap is, how its traded in the market, how it is priced and valued by big banks and vendors as well as real life case-studies of how these tools are used to hedge and speculate. The step by step breakdown is what you will encounter if you pursue a career in fixed income derivatives.

This course also has some overlap with the CFA/FRM certifications and shows on excel what the specific product is designed to do. While no familiarity with derivatives is required, it is certainly helpful as interest rate swaps are more of an intermediate level of derivatives that are traded in the markets today. As some of the highest volume trading instrument in the world, anyone who wants to break into finance will need to graph concepts of zero rates/discount factors and net present values well. Understanding how swaps are built and being able to articulate clearly how they derive their value will help you with interview prep and will also help you defend the prices of your products to counterparties once you actually land the dream job!

Interest rate swaps pricing and valuation

Url: View Details

What you will learn

• Students will gain an understanding of interest rate swaps ,its pricing and valuation as well as how these derivatives are used in the financial markets
• Students will be able to articulate how an interest rate swap is priced
• Students will understand different components of an interest rate swap such as discount factors/zero rates and forward rates

Rating: 0

Level: Beginner Level

Duration: 1 hour

Instructor: Aishwarya Kumaar