slide1 l.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Development of Swaps Market PowerPoint Presentation
Download Presentation
Development of Swaps Market

Loading in 2 Seconds...

play fullscreen
1 / 11

Development of Swaps Market - PowerPoint PPT Presentation


  • 190 Views
  • Uploaded on

Development of Swaps Market. Int. Options. Secondary Mkt. Conclusion. History. Types of Swap. Role. Agenda. History of Swaps and Swaps Population Role of Intermediary Types of Swaps and Swaps Variation Interest Rate Options Secondary Market for Swaps Conclusion Q&A. Int. Options.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

Development of Swaps Market


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
slide1

Development of Swaps Market

Duangporn Wattanasukchai

agenda

Int. Options

Secondary Mkt

Conclusion

History

Types of Swap

Role

Agenda
  • History of Swaps and Swaps Population
  • Role of Intermediary
  • Types of Swaps and Swaps Variation
  • Interest Rate Options
  • Secondary Market for Swaps
  • Conclusion
  • Q&A

Duangporn Wattanasukchai

history of swaps

Int. Options

Secondary Mkt

Conclusion

History

Types of Swap

Role

History of Swaps

1972

1982

  • The world’s monetary leaders suspended the Bretton Woods agreement in 1971
  • The Chicago Mercantile Exchange introduced foreign currency futures contracts in 1972
  • Salomon Brothers brokered the first currency swap in 1981.
  • Interest rate swaps first developed in late 1981
  • Sallie Mae engaging in the first contract in 1982
  • Establishment of the International Swaps and Derivatives Association (ISDA) and ISDA associated with most swaps as master agreements since 1985

1971

1981

1985

Duangporn Wattanasukchai

swaps population

Int. Options

Secondary Mkt

Conclusion

History

Types of Swap

Role

Swaps Population

Trillions of dollars outstanding in swap agreements

Duangporn Wattanasukchai

role of intermediary

Int. Options

Secondary Mkt

Conclusion

History

Types of Swap

Role

Role of Intermediary
  • Commercial banks and investment banks are intermediary in an interest rate swap.
  • Early, being as brokers and taking the opposite side of a swap.
  • Later, acting as dealers

Duangporn Wattanasukchai

types of swaps

Int. Options

Secondary Mkt

Conclusion

History

Types of Swap

Role

Types of Swaps
  • Interest Rate Swaps
  • Foreign Currency Swaps
  • Circus Swaps

Duangporn Wattanasukchai

swap variations

Int. Options

Secondary Mkt

Conclusion

History

Types of Swap

Role

Swap Variations
  • Deferred Swap
  • Floating for Floating Swap
  • Amortizing Swap
  • Accreting Swap

Duangporn Wattanasukchai

interest rate options

Int. Options

Secondary Mkt

Conclusion

History

Types of Swap

Role

Interest Rate Options
  • Interest Rate Cap
  • Interest Rate Floor
  • Interest Rate Collar
  • Swaption

Duangporn Wattanasukchai

secondary market for swaps

Int. Options

Secondary Mkt

Conclusion

History

Types of Swap

Role

Secondary Market for Swaps
  • Mirror Swap (Swap Reversal)
  • Swap Sale (Swap Assignment)
  • Swap Buy Back

Duangporn Wattanasukchai

conclusion

Int. Options

Secondary Mkt

Conclusion

History

Types of Swap

Role

Conclusion
  • Swaps are one of three broad types of derivatives.
  • There are 2 major types of swaps.
  • The market outstanding of swaps is around $2 trillions.
  • ISDA is a master agreement for swap.
  • There are 3 ways for getting out of swaps.

Duangporn Wattanasukchai

slide11
Q&A

Duangporn Wattanasukchai