I have to let swaps go

CFA Level II
#41

nice

#42

Jscott, what would you charge me for a three day crash course in swaps and FRAs? I’ll fly you into Philly (first class) and put you up in a five star hotel.

#43

damn bump… i thought JoeyD was back in town till i saw the post date.

#44

he has one on FRA’s- search it- he did one there 2. jscott rules.

#45

*BUMP*

#46

Good one. Just in time

#47

On the mark-to-market day, the PV of remaining floating payments plus principle is 1.0 This makes sense. But they use this to calculate for gains and losses for both party. For the pay-floating party, I thought the PV of payment should include 1.0 plus the payment due today with the rate that we know from previous period. I am working on Problem 12 in CFA text, and the book only uses the PV of future payment, excluding the current due payment. This doesn’t make sense to me. Please explain.

#48

*BUMP*

#49

Huge bump, thanks austinCFA and also to the swap wizard in this thread, great explanations

#50

Bump… In case you still need help with swaps. Look at the 2 examples by Jscott24 towards the end. One interest Rate Swap, another currency swap.

#51

bump

#52

You’ll need it. Bump

#53

i found other threads on this forum explaining swaps well. i posted them on a web site i created: https://sites.google.com/site/cfalevelii/home/swaps-simplified echoing others: don’t ignore swaps!!!

#54

You, wherever you are, know that you made someone’ day (mine) better. I am drinking a coffee in Starbucks smiling because what I was trying to learn the past 1.5 hour has been simplified in a post.

Lostone

#55

I have this problem with Economics.

The bid and ask calculations from client and dealor perspective are just so messed up.

#56

Bump!

For those (as I am) who are thinny with SWAPS. Jscott24 explained it excellent.

#57

You don’t want to let swaps go. I had a hard time understanding derivatives until I visited http://financialexamhelp123.com

#58

Thanks for bumping this. Very helpful post.