This one-day course provides an introduction to the basic forms of swaps and their associated processing lifecycles. Participants will explore product characteristics of Interest Rate, Credit Default, Currency and Equity swaps. Motivations for market participants, including swap banks, institutional investors, hedge funds and interdealer brokers, will be examined.
With this basic product information, the program will walk attendees through functional building blocks of middle and back office operations in the lifecycle of a swap, from the term sheet through settlement. Area of risk and exposure will be addressed throughout the program, along with counterparty risk and collateral management.
Topics covered include:
Overview of the swap market
Characteristics of Interest Rate, Credit Default, Currency and Equity Swaps
Role of the sales and trading desks: how deals originate and contract details
Counterparty risk
Price dissemination
Collateral management
How swap deals are confirmed
ISDA agreements and documentation
The evolving infrastructure of the industry
Deployment of 3rd party solutions such as DTCC’s DerivServ and their place in the lifecycle
Novations and how they are confirmed
Clearing House alternatives
Calculation, advice, and settlement of payments
Issues for operations
