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A foundation course that explains index linked markets. This includes how inflation is measured, how these bonds and swaps work and who is buying and selling.
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:
25th March 2017
Overnight index swaps (OIS) are interest rate swaps. There is an active and liquid market for these swaps going out two years and beyond depending on currency. The notional sizes dealt can be much larger than for fixed rate - Libor swaps. The trade is based on a notional amount (no exchange of principle) this is used in the calculation of the interest payments. One party pays a fixed rate of interest. The other pays a variable rate. The variable rate is linked to the unsecured overnight rate. For example, the Fed Funds rate, Euro Overnight Index Average (EONIA) or Sterling Overnight Index Average (SONIA). The overnight rate is compounded daily. At the end of the deal the fixed payment is netted out with the floating payment.
Learn about the following: How credit linked notes work. Why issuers and investors use credit linked notes. The main risks related to credit linked notes