Covered Bond Swaps
Richard Kemmish
30 years: Capital markets & covered bonds
One of the problems many covered bonds have to address is the mismatch between the interest rate on the assets and the interest rate on the bonds. Richard discusses how swaps are used to address this mismatch by explaining how swaps work, explaining how they are documented and providing some examples.
One of the problems many covered bonds have to address is the mismatch between the interest rate on the assets and the interest rate on the bonds. Richard discusses how swaps are used to address this mismatch by explaining how swaps work, explaining how they are documented and providing some examples.
Covered Bond Swaps
8 mins 32 secs
Swaps are utilised to address the main issue of the mismatch between the interest rate on bonds and the interest rate on assets by finding a willing counterparty to trade with.
Key learning objectives:
Identify the basic problems
Explain how Swaps and 2-Swaps work
Describe how to mitigate credit risks
Outline the ways in which covered bonds are documented
Richard Kemmish
07:41
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