September 2009
Beginner
272 pages
5h 56m
English
Content preview from Interest Rate Swaps and Their Derivatives: A Practitioner's Guide
Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
O’Reilly covers everything we've got, with content to help us build a world-class technology community, upgrade the capabilities and competencies of our teams, and improve overall team performance as well as their engagement.I wanted to learn C and C++, but it didn't click for me until I picked up an O'Reilly book. When I went on the O’Reilly platform, I was astonished to find all the books there, plus live events and sandboxes so you could play around with the technology.I’ve been on the O’Reilly platform for more than eight years. I use a couple of learning platforms, but I'm on O'Reilly more than anybody else. When you're there, you start learning. I'm never disappointed.I'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.
Preface
The market for interest rate swaps and their derivatives has experienced tremendous growth since its beginning in the early 1980s, and swaps are now a key component of capital markets. While trading in swaps and their derivatives was initially the domain of major money-center banks, most investment and commercial banks these days run a swaps and options desk alongside their cash and repo desks.
″RATES″ MARKET
The ″rates″ market consists of swaps, flow options (caps/floors, European swaptions), Bermudan swaptions, some semi-exotics (CMS/CMT products), and exotics (structured notes, . . .). While at some point, Bermudan swaptions were considered exotics, their popularity and volume has made them into an integral part of the interest-rate options market.
While a newcomer to a typical broker-dealer trading floor can find ample background material on the bond and repo markets, he is often overwhelmed by the instruments and the technical requirements to understand swaps and their derivatives. For bonds and repos, a typical analyst can use a Bloomberg terminal or the financial toolkit in Excel, or even an HP-12 calculator to get up and running. However, for swaps and options, he has to typically master the in-house derivatives system with many moving parts and nonstandard terms. The analyst can quickly become discouraged, and think of swaps and options to be the domain of quants and tech-savvy individuals who can handle such seeming complexity. Some of this complexity is ...
Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
and much more.
Read now
Unlock full access
More than 5,000 organizations count on O’Reilly
O’Reilly covers everything we've got, with content to help us build a world-class technology community, upgrade the capabilities and competencies of our teams, and improve overall team performance as well as their engagement.Julian F.
I wanted to learn C and C++, but it didn't click for me until I picked up an O'Reilly book. When I went on the O’Reilly platform, I was astonished to find all the books there, plus live events and sandboxes so you could play around with the technology.Addison B.
I’ve been on the O’Reilly platform for more than eight years. I use a couple of learning platforms, but I'm on O'Reilly more than anybody else. When you're there, you start learning. I'm never disappointed.Amir M.
I'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.