34 risk management applications of swap strategies

34 risk management applications
of swap strategies

managing interest rate risk

using interest rate swaps to convert
a floating-rate loan to a fixed

using swaps to adjust the duration of a fixed-income portfolio

using swaps to create and manage
the risk of structured notes

leveraged floating-rate notes

inverse floaters

managing exchange rate risk

converting a loan in one currency into another

converting foreign cash receipts into domestic currency

dual-currency bond

managing equity market risk

diversifying a concentrated portfolio

achieving international diversification

changing an asset allocation between stocks and bonds

reducing insider exposure

swaptions

using an interest rate swaption
in anticipation of a future borrowing

using an interest rate swaption
to terminate a swap

a note on forward swaps

synthetically removing/adding a call feature
in callable / noncallable debt

conclusions