We will cover a brief outline about the Swaps Introduction, What affects the Swap pricing, Risks in Swap transactions, the Swap Market, Swaptions and other related topics.
The typical topics covered when you undergo a swap lesson or course are as follows:
--Overview of the swap market :
This would include a brief overview and introduction about the swaps market, the swaptions market, how the market works and who all are the swap market participants.
--Factors affecting Swap market and pricing: Interest Rate, Currency, Credit Default and Equity Swaps :
Characteristics of all these factors and how they affect the swap market and pricing mechanism
--The roles of the sales and trading desks in swaps market:
This would primarily cover the details of how swap deals take place, originate and contract details and what roles do these teams have to play
--Counterparty risk :
Swaps market primarily is an OTC or Over the Counter Market. Hence, this Counterparty risk is a significant risk in the swaps market.
--Price dissemination in a swaps market :
How Prices are disseminated for swaps market
--Collateral management in a swaps market :
Various aspects of Collateral management in a swaps market
--How swap deals are confirmed :
The methodolgy for swaps and swaption deals and how the process takes place. This is important since swap market is an OTC market, so the entire process should be clear.
--ISDA agreements and documentation :
Required regulatory procedures.
--The evolving infrastructure of the industry :
Swaps are emerging as the hot products for banks and other organizations to hedge their risks and re-structure their loans. Hence they are becoming very common.
--Functions of Clearing House and alternatives for swaps market:
--Calculation, advice, and settlement of payments for swaps :
--Issues for operations for swaps
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