Interest Rate Risk Management
Tuesday, May 1, 2018 – Tuesday, April 30, 2019
This CPE course begins with a review of interest rates, then describes methods of interest rate risk such as equity financing, debt financing, or a combination of both. It describes internal and external hedging methods, as well as forward rate agreements (FRAs). It examines the features and operation of interest rate guarantees (IRGs) and interest rate futures (IRFs). It then explains interest rate futures and options, and methods of exchanging these transactions via swap.
- Recognize features of common instruments for managing interest rate risk
- Identify techniques for combining options in order to achieve a specific risk profile: caps, collars and floors
- Identify internal hedging techniques
- Operation and features of the more common instruments for managing interest rate risk: swaps, forward rate agreements, futures and options.
- Techniques for combining options in order to achieve a specific risk profile: caps, collars and floors.
- Internal hedging techniques.