Swaps (part 1): IRS - Foundation

Anyone who wants to reach a sound understanding of the interest rate swaps products used by investment managers.

Whoever has watched "The Wolf of Wall Street" has likely struggled to understand the jobs, products, jargon that surround financial markets. Some of us are still trying to get our way out of this financial jungle and clarify the associated strategies. Let's demystify these!

In close collaboration with PwC's subject matter experts, PwC Academy has developed a comprehensive, multi-layered training curriculum for junior and more experienced financial industries’ employees and managers alike, who seek to gain a solid knowledge of derivative instruments.

With the 'Swaps: IRS' foundation module, participants will dive into the characteristics and associated risks, market use, and valuation of Interest Rate Swaps.

By the end of this training, participants will be able to:

• define the general characteristics of swaps;
• gain an in-depth understanding of how swaps operate;
• list how swaps can best be used on the market, be it in isolation or in combination with other instruments;
• understand the valuation method and what can impact swaps' quotation;
• identify major risks associated and determine controls that may mitigate them.

• The fundamentals of an IRS swap contract:
  • asset or liability swap
  • main contract features
  • main swap uses
  • unwinding of a swap
  • swap risks
• Swap market and yield curve
• The case of a CRS
• Swaps variants: CMS swaps, 0-coupon swap

Other types of swaps: volatility or variance swaps, inflation swaps, commodity swaps, performance swaps, dividend swaps

This course content is presented in an attractive and understandable manner: it is illustrated with numerous real market examples. The course aims to provide a clear and thorough understanding of the considered instrument, with core mathematical concepts introduced when addressing pricing.

This training is coordinated by Samir Moussaoui, Director at PwC Luxembourg.

The different modules will be animated by experts in derivatives.

Samir Moussaoui is a director within the Valuation Services (VS) team, specialising in traditional and alternative investment funds with a focus on private business valuations and modeling. He possesses extensive expertise in valuation processes, techniques, market practices, and auditing skills. Samir leads the VS practice in managing diverse financial valuation engagements for local and international clients and PwC offices. He is a Chartered Financial Analyst (CFA) and Chartered Valuation Surveyor (MRICS), serves on the board of the Luxembourg Valuation Professionals Association, and actively contributes as a training instructor and member of PwC’s Transformation group.