Easy Office

Interest rate swap by CA Nagendra

Page no : 3

NS Learning Point (Financial Management) (530 Points)
Replied 22 November 2011



Rahul Bansal (Finalist) (35929 Points)
Replied 22 November 2011

Originally posted by : Himani Sharma

Excellent notes............

Thanks Rahul for sharing. Can you upload full notes on Interest rate swap and other's

Child Angel - Thank You Graphic

Golden Roses And Butterfly

 


Rahul Bansal (Finalist) (35929 Points)
Replied 22 November 2011

 

CA-Final

SFM/MAFA

Fee: Rs. 6,000/-

Starting From:

Days:

Timing:

Completion:

Venue

09-Dec-11

(Morning)

M/W/F/Sun

6:45 to 10:30AM

15th March 12

ITO

(Hans Bhawan)

09-Feb-12

(Evening)

Mon to Sat

5:30 to 8:30PM

20th April 12

Laxmi Nagar

BY: CA Nagendra

[B.SC. (H), CA, highest mark scorer in SFM-CA Final]

 

-Wide range of questions collection

-Full coverage, including “OTC Derivative Chapter” which is not covered by anyone till the date

-Double Benefit to ICWA-Final Student: Out of total 160 marks, CA final class will cover 120 marks (60 marks Capital Market and 60 marks FM) and remaining 40 marks of FM will cover by IPCC class. No extra payment for IPCC class

Institute of Quality Studies

 

D-223/1, 1st Floor, Near Metro Station (Above Deutsche Bank ATM),

Laxmi Nagar, Delhi-92

H-44, 1st Floor, (Near State Bank of Hyderabad), Laxmi Nagar, Delhi-92

Mob: 9811465474, 9718057916, 9910865804


premkarora (CMA) (86 Points)
Replied 23 November 2011

Wonderful...................

 

Thanks for sharing.


Rahul Bansal (Finalist) (35929 Points)
Replied 23 November 2011

Originally posted by : premkarora

Wonderful...................

 

Thanks for sharing.

Butterfly Stars And HeartsGlitter Graphics




Rahul Bansal (Finalist) (35929 Points)
Replied 27 November 2011

bookmark this post for future reference


Saurabh Kumar (CA Final(Article)) (86 Points)
Replied 26 December 2011

Superb notes.

and Best teachers for SFM


harpreet singh (Revenue Accountant at PSPCL)   (593 Points)
Replied 21 April 2012

thank a lot rahul.. ive been waiting for this topic notes since long.. thanx again


Rahul Bansal (Finalist) (35929 Points)
Replied 21 April 2012

Originally posted by : harpreet singh

thank a lot rahul.. ive been waiting for this topic notes since long.. thanx again

most welcome


gaurang (student) (81 Points)
Replied 15 September 2014

rahulji,

i had one query in hedging stratergies with swaps ( for Interest Rate swap) in top page of 5.11 of nagendra sir's note

Nature                           Risks                                    Hedginig action

Assets ( ie Deposit)        

Fixed rate                       Rising Interest rate                 swap from fixed to floating

Liabilities( Ie borrowing)

Fixed Rate                     Falling interest rate              swap from fixed to floating

MY QUERY: Assets 1) if in case of Depoist ( assets) if the rate of interest is fixed then why should i have risk of interest rate rising,infact i should be at risk if the interest rate is falling 

Liabilities 2) Nature Fixed rate: If the interest  rate is falling then i should be benefited,but why should i have risk of rate falling 

Sir due to unclarity of the above topic ,i am not able to solve the given 4 examples 

Kindly help

Pranam




CA Nagendra (CA) (1788 Points)
Replied 15 September 2014

Answer: Q-1: Basically, On deposite, we earn interest. If interest rate is rising in floating market, you are not able to realise benefit from that rising floating rate because your interest rate is fixed. So your intention is to earn benefit from that rising interest rate (i.e. receive higer interest rate) and it is possible when you are earning floating income. basically it is risk of opportunity loss which one can earn by convering fixed income into flaoting income.

 

I think you can link same concept in second query also.

1 Like

gaurang (student) (81 Points)
Replied 15 September 2014

Thank you very much sir,i was little bit confused as the word " Risk" was wrronglly interpreted by me , as your rightly said it is 'Risk of Opportunity cost", my doubts are cleared for the same.

Thank you again sir...

Pranam


amrita (article) (110 Points)
Replied 15 September 2014

pls upload capital budegeting notes tooo

1 Like


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register  




Subscribe to the latest topics :

Search Forum: