Swaps might have to be the single most difficult thing to grasp (at least for me). I know they are in the cirriculum and blah blah blah, but does anyone really think an entire item set could be devoted to swaps? I just feel like at this point I need to move on (just not clicking) Thoughts?
Probably depends on where you are w/ the curriculum and how much time you have left to study. Optimize your time as much as possible. Derivatives are 5-15%. If you can nail the other derivatives areas in the time it takes you to be mediocre w/ swaps… then maybe that’s a good risk/reward trade-off. I’m doing swaps now, it’s my last reading section. I’ve done the other 69. Just finished question #1.
get swaps down. you will see them June 4th. if you’re lucky maybe even a full vignette! currency swap at that. Learn it. Live it. Love it.
once you ve done about 10 swap questions, you will be able to do them in ur sleep because the steps are exactly the same. find R periodics, find PV factor, find your fixed value, find your floater etc… practice makes perfect
if you slow down, and think of each question in term of BONDs they are very easy… the entire idea is, how do i create the value of this position using a bond, now what is teh value of this bond how to i create the other side using a bond, now what is the value of that bond… now take the diff… Schweser videos are great for swaps
yeah, it’s not too bad if you turn it into formulas. then it’s just plug and chug.