Part D The Bank as Service Provider, 23 Swaps and Derivatives

Subject(s):

Regulation of banks — Spread swap (CSS) — Swapoption — Total return swap (TRS)

This chapter provides a brief overview of swaps and derivatives. It discusses interest rate swaps; currency swaps; default and termination; the netting of multiple contracts on default and collateral issues; certain defences available to a swap counterparty on the basis of its contractual capacity; and recent issues arising from the alleged mis-selling of swap products.