Fixed Income Derivatives and Risk Management

In this section

• Interest Rate Derivatives
  Study swaps, futures, forwards, and options used to manage or express interest rate views.
  • Interest Rate Swaps
    Learn how interest rate swaps are structured and how they are used for hedging and positioning.
    • Interest Rate Swap Mechanics
      Understand how fixed-for-floating swaps are structured, priced, and settled.
    • Hedging with Interest Rate Swaps
      See how swaps are used to manage duration, funding exposure, and rate sensitivity.
  • Interest Rate Futures and Forwards
    Review how rate futures and forwards are used to hedge and trade expected moves in interest rates.
    • Treasury Futures Contracts
      Learn how Treasury futures are quoted and used in fixed income hedging and trading.
    • Eurodollar Futures
      Review Eurodollar futures as a legacy short-term rate derivative and benchmark contract type.
  • Interest Rate Options
    Study common interest rate option structures and how they shape risk exposure.
    • Caps, Floors, and Collars
      Understand how caps, floors, and collars define rate protection and option cost.
    • Swaptions
      Learn how swaptions give investors the right to enter an interest rate swap in the future.
• Credit Derivatives
  Study credit derivatives used to transfer, hedge, or gain exposure to credit risk.
  • Credit Default Swaps
    Understand how credit default swaps transfer default and spread risk between counterparties.
  • Credit-Linked Notes
    Review how credit-linked notes combine bond exposure with embedded credit derivative risk.
  • Total Return Swaps
    Learn how total return swaps transfer market and income exposure without transferring ownership.
• Structured Products and Synthetic Instruments
  Review structured fixed income products built from tranching, pooling, and synthetic exposure.
  • Collateralized Mortgage Obligations
    Understand how mortgage cash flows are restructured into tranches with different risk profiles.
  • Collateralized Debt Obligations
    Review how CDOs pool debt exposures and allocate risk and return across tranches.
  • Synthetic CDOs
    Learn how synthetic CDOs create credit exposure using derivatives instead of cash bonds.
• Risk Management Techniques
  Study practical techniques for hedging exposures and managing derivatives within fixed income portfolios.
  • Hedging Strategies
    Review core hedging approaches used to offset duration, curve, and spread risk.
  • Portfolio Management with Derivatives
    See how derivatives are integrated into fixed income portfolio construction and rebalancing.
  • Regulatory Considerations for Fixed Income Derivatives
    Understand the main regulatory themes that shape derivatives trading, clearing, reporting, and risk controls.