Introduction to Interest Rate Swaps and Use Cases

Introduction to Interest Rate Swaps and Use Cases

David Leeming

25 years: Trading & derivatives

David provides an overview of interest rate swaps - what they are, why they are used, typical parties involved and key components of the derivative.

David provides an overview of interest rate swaps - what they are, why they are used, typical parties involved and key components of the derivative.

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Introduction to Interest Rate Swaps and Use Cases

17 mins 58 secs

Overview

An interest rate swap (IRS) is an over-the-counter derivative contract between two parties who agree to exchange a series of future interest rate payments. One of the parties commits to paying a series of fixed payments over the life of the contract; the other commits to paying a series of floating-rate payments.

Key learning objectives:

  • Define the key components of and parties to an interest rate swap

  • Explain a liability swap and how they are used

  • Explain an asset swap and how they are used

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Summary
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Expert
David Leeming

David Leeming

David has over 20 years trading interest rate products. Starting with Italian and Spanish markets in the 90’s enabled him to move to Brazil and then onto Hong Kong. Returning to the UK he ran the GBP Rates Desk at UBS in London trading IRS and Swaptions. He also served on the ISDA Rates Steering Committee and London Clearing Houses’ Default Management Committee.

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