Columbia University Press
“Interest Rate Swaps and Other Derivatives” by Howard Corb is a comprehensive guide to understanding and trading interest rate derivatives in financial markets. Here's what you can expect from this book:
- Introduction to Derivatives: Corb provides an overview of derivatives markets, including the role of derivatives in managing risk, speculation, and arbitrage. He covers the basic principles of derivatives pricing, valuation, and trading.
- Interest Rate Swaps: The book focuses on interest rate swaps, one of the most widely traded types of derivatives. Corb explains how interest rate swaps work, their uses in hedging interest rate risk, and the mechanics of pricing and trading swaps in different currencies and maturities.
- Other Interest Rate Derivatives: Corb also discusses other interest rate derivatives, such as forward rate agreements (FRAs), interest rate futures, options on interest rate futures, and interest rate caps, floors, and collars. He explores the features, applications, and pricing of these derivative products.
- Risk Management: The author covers risk management considerations associated with interest rate derivatives, including credit risk, market risk, basis risk, and liquidity risk. He discusses techniques for measuring and managing these risks in derivative portfolios.
- Regulatory Environment: Corb examines the regulatory environment for derivatives markets, including the role of regulatory agencies, regulatory reforms enacted in response to the 2008 financial crisis, and the impact of regulatory changes on derivatives trading and clearing.
- Market Trends and Developments: The book discusses recent trends and developments in interest rate derivatives markets, such as the shift toward central clearing, the growth of electronic trading platforms, and innovations in derivative product design.
- Trading Strategies: Corb explores different trading strategies employed by investors and traders in interest rate derivatives markets, including hedging, speculation, yield curve trading, and relative value trading. He provides insights into the factors influencing trading decisions and the execution of trading strategies.
- Case Studies and Examples: Throughout the book, Corb includes case studies, examples, and real-world scenarios to illustrate key concepts and principles in interest rate derivatives trading. These practical applications help readers understand how derivatives are used in practice.
“Interest Rate Swaps and Other Derivatives” is suitable for finance professionals, traders, risk managers, and anyone seeking to gain a deeper understanding of interest rate derivatives markets. With its clear explanations, comprehensive coverage, and practical insights, this book serves as a valuable resource for navigating the complexities of interest rate derivatives trading.