Interest Rate Swaps

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Published Oct 3, 2017

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Marina Pepić
National Bank of Serbia, Belgrade, Serbia

Abstract

Interest rates changes have a huge impact on the business performance. Therefore, it is of great importance for the market participants to identify and adequately manage this risk. Financial derivatives are a relatively simple way of protection from adverse changes in interest rates. Interest rate swaps are particularly popular because they reduce interest rate risk to a minimum with a relatively low initial cost and without great risk, but also because of the fact that there are many modifications of the standard swap created to better satisfy the different needs of market players.

Article Details

Issue
Vol 47 No 3-4 (2014): Economic Analysis
Section
Part II: Financial Economics
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