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elearning > Currency basis swaps

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Learn about the following:

What a currency basis swap is. How currency basis swaps work. How to read the price quotation. How these swaps influence the price of other deals.

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Course Summary

Currency basis swaps menuCurrency basis swaps exchangeCurrency basis swaps re-exchange

Currency basis swaps priceCurrency basis swaps price affectCurrency basis swaps price affect 2

  • 25 minutes
  • 5 question multiple choice
  • What a currency basis swap is
  • How to read the price quotation
  • How these swaps influence the price of other deals

Currency Basis Swaps - the details

1. How a currency basis swap works 

  • Principal exchange
  • Interest payments
  • Re-exchange of principal 

2. Price quotation 

  • Against USD flat
  • How the basis point adjustment applies
  • Paying and receiving USD Libor
  • A simple rule to follow

3. How other deals are influenced 

  • Swapping a liability in USD for GBP
  • Principal exchanges
  • Interest payments
  • Negative and positive margins
  • How the basis swap price influences the all-in-cost

4. Summary 

5. Test

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