Concluding Comments

This chapter outlined some of the interest rate derivatives like interest rate swaps, caps, floors, collars, and swaptions. Interest rate derivatives like swaps and collars find application in managing floating rate portfolios (from the perspective of investors). Investors can invest in floating rate instruments and convert the floating rate receipts to fixed rate.

The subsequent chapters deal with measuring and managing credit risk - the other factor that affects the value of fixed income portfolios.

Business Brain

Business Brain

Among the hardest transitions for individuals is to move from the employee to the entrepreneur mentality. The idea of getting on your own, getting your own business is fantastic. It's the desire of a lot of individuals to leave their jobs and get to be successful business owners.

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