Menu

Home
About
Contact
Client Login

The Hedgebook collection

Insights, updates and learnings
Why use an interest rate swap and how does it work?
26/07/21
Why use an interest rate swap and how does it work?
A popular blog first released in 2015, largely to help explain what an Interest Rate Swap or IRS is. Funnily enough – the need to know is just as great today, if not greater.
Read more
End of year derivative valuations
22/02/21
End of year derivative valuations
Having first looked at this in 2013 we revisit our analysis of end-of-year derivative valuations and the impact they have.
Read more
Credit Value Adjustment
17/10/13
Credit Value Adjustment
Credit Value Adjustment or CVA has been around for a long time, however, with the introduction of the accounting standard IFRS13, this year there is a requirement to understand it a bit better. The new standard requires the CVA component to be separately reported from the fair value of a...
Read more
05/03/13
Hedging, and a deeper look into the types of Financial Hedges
Financial hedging involves buying and selling foreign exchange instruments that are dealt by banks and foreign exchange brokers. There are three common types of instruments used: forward contracts, currency options, and currency swaps.
Read more
16/01/13
Hedging Basics: Currency Swaps
A currency swap locks in a price of a currency pair and is another tool that can be used to manage an organisation's cash flow. It pays the fixed-price buyer of a currency pair a payout equal to the difference between the current price and the settlement price of the swap.
Read more
16/10/12
Where do Swaps Fit into Your Company’s Portfolio?
This is part 10 of a 10 part series on currency swaps and interest rate swaps and their role in the global economy. In part 9, we discussed regulation affecting swaps. In part 10, we’ll review the effectiveness of swaps and whether or not they should be used part of a hedging strategy.
Read more
The Future of Interest Rate Swaps: Will Regulation Kill this Investment Vehicle?
12/10/12
The Future of Interest Rate Swaps: Will Regulation Kill this Investment Vehicle?
This is part 9 of a 10 part series on currency swaps and interest rate swaps and their role in the global economy. In part 8, we discussed the role of interest rate swaps in the demise of Greece. Given the importance of swaps in the U.S. housing crash, new regulation has arisen that could threaten the future of this important financial derivative.
Read more
The Euro-zone Crisis: Goldman Sachs, Greece, and Swaps
10/10/12
The Euro-zone Crisis: Goldman Sachs, Greece, and Swaps
This is part 8 of a 10 part series on currency swaps and interest rate swaps and their role in the global economy. In parts 1 through 4, we discussed the differences between interest rate swaps and currency swaps, as well as the pricing mechanisms for fixed-for-floating, floating-for-floating, and fixed-for-fixed swaps. In part 8, we’ll discuss the role of swaps in more recent times: the Euro-zone crisis.
Read more
08/10/12
Understanding Central Bank Liquidity Swaps
This is part 7 of a 10 part series on currency swaps and interest rate swaps and their role in the global economy. In part 7, we illustrated how companies use swaps in the global market place, but on a company-to-company basis. In part 8, we’ll explain the purpose of swaps on the central bank level and when they’re used.
Read more
05/10/12
Real World Example: Swaps Between Companies
In part 6 of a 10 part series on currency swaps and interest rate swaps and their role in the global economy we provide a real world example of how swaps are constructed and executed.
Read more
03/10/12
Swaps: A basic Q and A
This is part 5 of a 10 part series on currency swaps and interest rate swaps and their role in the global economy. In parts 1 through 4, we discussed the differences between interest rate swaps and currency swaps, as well as the pricing mechanisms for fixed-for-floating, floating-for-floating, and fixed-for-fixed swaps. In part 5, we’ll review the basics before looking at some real world examples in parts 6 and 7.
Read more
02/10/12
Floating-for-Floating and Fixed-for-Fixed Swaps: Domestic and Foreign Currency Transactions
This blog on floating-for-floating and fixed-for-fixed swaps is part 4 of a 10 part series on currency swaps and interest rate swaps and their role in the global economy.
Read more
23/09/12
Fixed-for-Floating Swaps: Domestic and Foreign Currency Transactions
This is part 3 of a 10 part series on currency swaps and interest rate swaps and their role in the global economy. In parts 1 and 2, we discussed the beginnings of swaps as well as the differences between interest rate swaps and currency swaps. In part 3, we’ll discuss fixed-for-floating swaps.
Read more
20/09/12
The differences between Currency Swaps and Interest Rate Swaps
This is part 2 of a 10 part series on currency swaps and interest rate swaps and their role in the global economy. In part 1, we discussed the beginnings of swaps. In part 2, we’ll explore the differences between the two major types of swaps and their different uses for financial institutions.
Read more
Why Are Interest Rate Swaps Important?: A Brief History
12/09/12
Why Are Interest Rate Swaps Important?: A Brief History
In this blog we discuss the history of interest rate swaps so as to better understand the vital importance of this investment vehicle.
Read more
29/08/12
Just what is an interest rate swap?
One of our team was recently asked to give a simple overview of interest rate swaps and how they work. Below was the explanation we put together, using a comparison between an interest rate swap to a fixed-rate bank loan to illustrate the key characteristics. We think it is a nice, concise and clear way to explain interest rate swaps so thought we would share it. Comments welcome.
Read more

Want to know the latest? Sign up to our newsletter.

Get irregular, sometimes irreverent, updates from the Hedgebook team.
Sign up now