This is the article Archive.  

I will post helpful articles and research reports here.  The originating source is always noted.  If you would like to contribute an article, or want to have a favorite article included, please let me know.

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1.  FASB 133 causes hedging activity to Decline

This is a survey from the Association of Finance Professionals

2.  Valuing Swaps - Here is an article in Microsoft Word format from the Bank of Montreal that does a great job describing how to value your existing swaps.  This is very helpful when you want to unwind a swap.  It enables you to ensure that your banker is getting too greedy!

WHAT ARE YOUR SWAPS WORTH

3.  Hedging Treasury Movements - Are your financing costs tied to a spread over Treasuries?  Want to know how to also hedge Treasuries?  Read this article in Microsoft Word format also from the Bank of Montreal for insight on how to hedge Treasury Risk.

LOCKING IN TREASURY RATES WITH TREASURY LOCKS

4.  Standard and Poor's Swap Criteria - You need to read this article if you plan on using interest rate swaps in an asset backed deal rated by S&P.  It tells the reader which elements of the ISDA need to switched off based on the transaction type described.  

S&P Swap Criteria

5.  ISDA's Report on Swap Collateralization - Many ttransactions require collateral to be posted if the swap counter-party's (a bank) credit rating decline below a specific rating.  This article describes what happens and how the collateral actually gets posted.

Swap Collateral