Hedgebook's Guide to Interest Rate Swaps for Smart People
(Those who realise they may not know it all).
Interest rate swaps (or IRSs) are often simply described as an exchange of cash flows. But very quickly they can become a lot more complex than that. IRS form approximately 60% of the global OTC derivative market, making it the largest single component to be managed and something that should be on every finance team's radar.
In this eBook, we take the mystery out of managing interest rate swaps and apply our learnings to more effective IRS management in the current environment.
What this eBook covers
- Understanding how interest rate swaps work
- Why you would use an IRS
- Factors to consider when using an IRS to hedge debt
- Valuations and the Cashflow Map
- LIBOR cessation and the impact on valuations
- Financial reporting requirements
- Getting to grips with the terminology used
For those who need it - there's a really technical exploration of an interest rate swap.
And for those short on time - a quick summary that covers the main bases. All in a very easy-to-read format.