Detail A Review of Issues on Interest Rate Swaps   Oleh:  Lee, Myoung Hoon ; Goei, Siauw Hong Jenis: Article from Bulletin/Magazine Dalam koleksi: Jurnal Manajemen Prasetiya Mulya vol. I no. 2 (1994), page 51-57. Topik: interest rate; interest rate; swaps Ketersediaan Perpustakaan Pusat (Semanggi) Nomor Panggil: JJ10.1 Non-tandon: 1 (dapat dipinjam: 0) Tandon: tidak ada     Lihat Detail Induk Isi artikel Interest rate swap is one of the most successful financial innovations in the latter half of the 20th century. Since the first interest rate swap was introduced in 1981, interest rate swap has drown to a market worth in excess of $ 4 trillion in 1992. The fast growing market for interest rate swaps such as the interest rate swap historical development, market and role of financial intermediaries, rationale for interest rate swaps, risk related swap, innobation in the interest rate swap, recent developments of interest rate swap and future of interest rate swap. There are several explanations for the success of the interest rate swap. The earliest argument on the existence of this market based on the market inefficiency, which creater arbitrage opportunity. However, this argument cannot explain the development of interest rate swap market. Arbitrage wil not exist for long time, therefore if the only reason for interest rate swap is arbitrage, interest rate swap will not grow to its current size. There are several other arguments on the reason for the existence of interest rate swap market, such as exposure management, tax and regulatory arbitrage, information asymmetry, adjusting the amount of debt and synthetic instruments. This article will discuss those arguments in detail. The development of interest rate swap market is an interesting subject to study. The first form of interest rate swap market is direct dealing between the parties interested in the swap. However, further development of the market requires involvement of financial institutions. There are three roles of financial intermediaries that are studied : broker, dealer and intermediary. While interest rate swaps are created to deal with interest rate fluctuation, the swap created other risks. There are two major risks for interest rate swaps : credit risk and market risk. Credit risk is related to the risk of default of the counterparty in the interest rate swap contract, while market risk delays to the risk due to interest rate fluctuations. While many experts view there is no significant innovation in the interest rate swap, the study observed several variations form the basic interest rate swap that are created to meet the need of certain niches. Among those innovations are : zero - coupon swaps, floating - for - floating swaps, callable and puttable swap, extendable swaps, forward swaps, off - market swaps, non - LIBOR swaps, and swap option (swaption). Finally this article reviews several developments in the past years and the future of interest rate swap. Some important developments in the interest rate swap market are the emergence of secondary market and the documentation and securitization. The standardization of interest rate swap market are the emergence of secondary market and the documentation and securitization. The standardization of interest rate swap market will enable the trading of the swap in exchange. Swap trading in exchange will foster the future growth of interest rate swap market since it will provide liquidity in the swap transactions. Opini Anda Klik untuk menuliskan opini Anda tentang koleksi ini! Kembali

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