This course covers two types of derivative instruments, namely interest rate swaps that allow users to exchange fixed interest payments for floating payments in the same currency and vice versa, and cross–currency swaps which involves two currencies.

By the end of this course, you will:
- Know how the notional size of the interest rate derivative contracts compare with those of derivatives on other underlying assets or instruments.
- Understand how a cross–currency swap may be used for hedging the risk of a bond issuance in a foreign currency as well as for investment purpose.
- Know the mechanics of interest rate swaps and their use in asset–liability management.
- Know some of the risks associated with these swaps.