FRAs Swaps and Credit Derivatives

Description

FPI Approval No: FPI21060101
FPI 2 CPD points

Description:
Before embarking on the exploring swaps and FRA’s we need to explain and define the general meaning and background of derivatives.
History is littered with examples of financial institutions and companies that have endured deep crises, or indeed collapsed, due to misjudgements. These could be misjudgements due to the price of oil, due to the price of the property, due to the gold price and are often the misjudgements on the direction of a market.

Course Overview:

Over the Counter (OTC) Derivatives versus Exchange Traded Derivatives Forward Rate Agreements (FRAs)

• Description of an FRA.
• Uses, Advantages & Disadvantages.
• Understanding the terminology.
• Generic Representation
• FRA Quotations
• Settlement
• Documentation

Interest rate swaps (IRS)

• Description
• Swap Applications
• Some South African Nuances
• Users of Swaps
• Types of Interest Rate Swaps
• Settlement

Credit Derivatives

• Types of Credit Derivatives
• Users
• Fee Determinants