Interest Rate Swaps

Interest Rate Swaps

Have you been considering Interest Rate Swaps as a way of managing Interest Rate exposure?

Interest rate swaps are popular and highly liquid financial derivative instrument in which two parties agree to exchange interest rate cash flows, based on a specified notional amount from a fixed rate to a floating rate (or vice versa) or from one floating rate to another.

Whilst swaps are commonly used and are very effective if used well, the management of these derivatives can be confusing and the associated accounting can be complex. Hedgebook makes it easy.

To see Hedgebook’s tools for making management and accounting for Interest Rate Swaps simple please take a look at this short video.

Hedgebook and Interest Rate Swaps

Have you been considering rate swaps as a way of managing Interest Rate exposure?

Interest rate swaps are popular and highly liquid financial derivative instrument in which two parties agree to exchange interest rate cash flows, based on a specified notional amount from a fixed rate to a floating rate (or vice versa) or from one floating rate to another.

Whilst swaps are commonly used and are very effective if used well, the management of these derivatives can be confusing and the associated accounting can be complex. Hedgebook makes it easy.

To see Hedgebook’s tools for making management and accounting for Interest Rate Swaps simple please take a look at this short video.

Instant fair value (mark-to-market) calculations for your transactions and sensitivity reporting remove the manual elements of complying with accounting standards such as IFRS7 and IAS39, and remove the reliance on your bank for fair values.

Sensitivity reporting also plays a valuable role in management of a portfolio by clearly demonstrating the effect that shifts in interest rates would have on the P&L.

Capturing a swap in Hedgebook is a simple process, with the entry of all of the key parameters of in a single deal input screen. Here the face value, maturity date, reset frequency accrual basis and coupon rate and coupon margins are entered and the swap is saved.

Hedgebook supports multiple variations of accrual basis, reference rate, business day conventions and swap curves to match the exact parameters of your particular swap.

Once saved, the Interest Rate Swap can be valued at any time based on Hedgbooks daily rate feeds.

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