Interest Rate Swaps: Fundamentals, SOFR, and Practical Excel

Fluctuating interest rates can significantly impact financial portfolios; mastering interest rate swaps is key to managing this risk. This course will equip you with the essential knowledge and practical skills to understand, value, and manage risk associated with interest rate swaps, particularly those linked to SOFR. What you'll learn: * Understand the core mechanics and terminology of various interest rate swap structures. * Learn the transition from LIBOR to SOFR and its impact on swap valuation and market conventions. * Apply fundamental concepts to value plain vanilla and SOFR-linked interest rate swaps. * Build practical Excel models for calculating swap payments and determining fair value. * Identify and analyze key risk exposures inherent in interest rate swap portfolios. * Practice managing interest rate swap risk through various strategies and scenarios. The course begins with foundational concepts and definitions, gradually progressing to detailed explanations of swap mechanics, valuation methodologies, and practical risk management approaches. You'll move from theoretical understanding to hands-on application through guided exercises and examples. This course is designed for absolute beginners with no prior experience in derivatives or interest rate swaps. No specific financial or programming prerequisites are required, just a willingness to learn fundamental concepts and apply them. Begin your journey to confidently analyze and manage interest rate swap instruments.