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Short courses>Currency swaps & basis swaps

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Currency swaps & basis swaps - 2.5 hours

A foundation course that explains the various types of currency and basis swap. This includes how they work, the risks and their importance in pricing hedging transactions.

It is suitable for those working in or around financial markets who need to know more.

There are simple examples with time for questions and answers.

This course is only available in-house and is suitable for up to 12 people.

This is what is covered:

  • Back-to-back lending in different currencies
  • Fixed - fixed currency swaps
  • Fixed – floating currency swaps
  • Floating – floating currency swaps
  • The exchange of principal – when and at what rate
  • Currency swaps and counterparty credit risk
  • Basis swaps – what they are and how they work
  • Examples of basis swaps
  • Why basis risk matters – windfall gains and losses
  • How basis swaps are used in hedging
  • How the price of basis swaps needs to be factored into hedging transactions
  • Examples from the bond and forward foreign exchange markets

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