Interest Rate Swap Tutorial, Part 3 of 5, Floating Legs

Introducing floating legs For our example interest rate swap we will be using the following inputs: Notional: $1,000,000 USD Coupon Frequency: Semi-Annual Fixed Coupon Amount: 1.24% Floating Coupon Index: 6 month USD LIBOR Business Day…

The GFC, Corporate Governance and Hedgebook…

In the wake of the Global Financial Crisis (GFC), Corporate Governance has become a key focus, not just for large organisations but for small to medium sized entities as well. Corporate Governance relates to the…

Interest Rate Swap Tutorial, Part 2 of 5, Fixed Legs

Now that we know the basic terminology and structure of a vanilla interest rate swap we can now look at constructing our fixed leg of our swap by first building our date schedule, then calculating the fixed coupon amounts.

Judicious use of FX orders to get hedging in place

Once a company with foreign exchange risks has decided to lift or reduce hedging percentages as part of their risk management strategy, value-enhancing market dealing tactics to get the hedging entered at more favourable exchange…

Taking risk

Some things never change – especially in financial risk management…

It always surprises me with treasury management how much changes and yet how much stays the same. Having been in the treasury game for almost 25 years the basics remain the same – it’s all…

Is your beloved spreadsheet costing you a fortune?

Why is it that we love our spreadsheets so much? They are labour intensive, they’re often very complex and we all know about the risk of errors, yet we continue to nurture and protect our…