This eCourse consists of three modules. A typical interest rate swap (IRS) allows an entity to transform fixed rate cash flows into floating rate or vice versa. Module 1 looks at how a typical corporate IRS is structured and shows how the cash flows on a bond can be restructured using an asset swap.

Module 2 is a scenario that explores how various interest rate risk management concepts are used in practice. You will observe a situation where an Australian corporate treasurer manages a set of liabilities and their consequent interest rate exposures.

Module 3 is another scenario explores how a par-priced asset swap can be used to transform a fixed rate bond into a synthetic FRN.

On completion of this course, you will be able to:
- Recognize how interest rate risk can be managed using interest rate swaps
- Identify the key features of an asset swap

Module 1: Swaps – Applications
Topic 1: Interest Rate Risk & Swap Transactions
Topic 2: Asset Swaps

Module 2: Swaps Applications for Corporates – Scenario

Module 3: Swaps Applications for Institutional Investors – Scenario