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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.

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Interest Rate Swap Tutorial, Part 1 of 5

This is the first in our interest rate swap tutorial; a series of articles that will go from the basics about interest rate swaps, to how to value them and how to build a zero…

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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…

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Interest Rate Swap Tutorial, Part 5 of 5, building your swap curve

Swap Curve In the final article in this series, we will continue to build out our discount factor curve using longer dated par swap rates. Par Swap rates are quoted rates that reflect the fixed coupon for…

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Interest Rate Swap Tutorial, Part 4 of 5, Swap Curve Construction

Swap curve construction In the previous articles we described basic swap terminology, created coupon schedules and calculated fixed and floating coupon amounts. We also present valued our cashflows and calculated forward rates from our Zero Curve. A…

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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…

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What to know about IFRS 7 and IFRS 9

IFRS, International Financial Reporting Standards, has a mission of increasing financial statement readability and disclosure requirements. Profit and loss reporting plus risk management strategies play essential roles in both IFRS 7 and IFRS 9 rules….

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Navigating these stormy economic waters

Many exporters confuse foreign exchange management with trying to predict where the currency is going. The reality is that no one knows where the currency is heading today, tomorrow, next week or next year. In…

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Making business easier…

Well Hedgebook is officially underway. That feels good. Isn’t it great when a good idea comes to fruition. Heaven knows most of them don’t…And as they say, its often the simple ideas that turn out…