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How to Use Swaps to Hedge Interest Rate and Inflation Risk in Muni Bond Portfolios
For investors looking to diversify their portfolios with potentially lower risk, municipal (muni) bonds are becoming an increasingly attractive investment option. In this blog, we explain how muni bond investors can use swaps to hedge their exposure to interest rate fluctuations and inflation expectations, which have been the main drivers of muni bond market performance in 2024.
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Derivatives trading rises at SGX in October
The amount of derivatives trading and clearing happening on the Singapore Exchange rose in October from the same month in 2012, the Asian bourse stated on Nov. 4. One item of news that was notable was that the open interest in these risk management tools was 62 percent higher at the end of October when compared to the same time last year. At the conclusion of the fall month, there were 3.7 million
November 5, 2013
Blog
House votes to repeal derivatives regulations affecting bank swap transactions
The U.S. House of Representatives voted on Oct. 30 to repeal certain derivatives regulations that would require banks to set up separate businesses to handle their swaps transactions. These OTC derivatives trades would be pushed into separate entities not insured by the federal government as a result of a specific provision that was contained in the Dodd-Frank Act, according to The New York Times
November 5, 2013
Blog
FINCAD Hosts Recent Panel on "The CVA Conundrum"
The past several years CVA & related valuation adjustments have been an instrumental part of an ongoing and evolving global dialogue. Since the financial crisis put a spot light on the need for effective management of counterparty credit risk in OTC derivatives trading banks have attempted to calculate their Credit Value Adjustment charges under the Basel III regulatory framework and there have
November 3, 2013
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The Embargo Rule: Good News from Dodd Frank?
One rule imposed by Dodd Frank that presents an opportunity for dealers is the “embargo” rule, otherwise known as the law requiring real-time public reporting of all swaps transactions and pricing data, which was created to provide better liquidity in the OTC market. This rule offers somewhat of an olive branch to dealers and major swap participants by allowing them to share raw transaction data
November 1, 2013
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Eurex to offer derivatives trading of contracts based on Vienna Stock Exchange indices
Germany-based bourse Eurex announced on Oct. 28 that it will soon list derivatives products that are based around indices that are currently listed on the Vienna Stock Exchange. As a result, global market participants will have an easier time gaining exposure to Austrian securities, according to Banking Technology. By the end of last month, a total of more than 6.8 million Austrian derivatives
November 1, 2013
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