TAILIEUCHUNG - Bài giảng International financial management: Chapter nine - Ngo Thi Ngoc Huyen

Bài giảng "International financial management - Chapter nine: Currency swaps" has contents: Interest rate swap can reduce interest rate risk, a swap can convert a floating rate loan into a fixed rate loan and vice versa. | CHAPTER NINE INTEREST RATE SWAP • Interest rate swap can reduce interest rate risk CURRENCY SWAPS • A swap can convert a floating rate loan into a fixed rate loan and vice versa 1 DEBT RATING BY MOODY’S INVESTORS SERVICE & STANDARD AND POOR’S CORPORATION GENERAL DESCRIPTION Moody’s High quality Upper medium grade Lower medium grade DEBT RATING BY MOODY’S INVESTORS SERVICE & STANDARD AND POOR’S CORPORATION GENERAL DESCRIPTION S&P’s Moody’s S&P’s Low grade, speculator Ba1 BB+ Highly speculator Ba2 Ba3 B1 B2 B3 BB BBB+ B BCCC+ CCC CCCCC C D NONINVESTMENT GRADE INVESTMENT GRADE Maximum safety 2 Aaa AAA Aa1 Aa2 Aa3 A1 A2 A3 Baa1 Baa2 Baa3 AA+ AA AAA+ A ABBB+ BBB BBB- Substantial risk Caa Extremely speculative Very extremely speculative Default 3 Ca C 4 1 DEBT RATING BY MOODY’S INVESTORS SERVICE & STANDARD AND POOR’S CORPORATION Moody’s Aaa S&P AAA Aa A Baa Ba AA A BBB BB DEBT RATING BY MOODY’S INVESTORS SERVICE & STANDARD AND POOR’S CORPORATION Debt rated Aaa& AAA has the highest rating. Capacity to pay interest and principal is extremely strong A very strong capacity to pay interest and repay principal A strong capacity to pay interest and repay principal Having an adequate capacity to pay interest and repay principal Debt rate in these categories us regarded, on balance, as predominantly speculative with respect to capacity to pay interest and repay principal in accordance with the terms of the obligation. BB & Ba indicate the lowest degree of speculation, and CC and Ca the highest degree of speculation B B Caa CCC Ca CC C C No interest is being paid D D Payment of interest and/or repayment of principal is arrears Very high quality High quality Speculator Very poor S&P’S AAA, AA A, BBB BB, B CCC, D Moody’s Aaa, Aa A, Baa Ba, B Caa, C 5 • • • 6 SWAP TRANSACTION SWAP TRANSACTION Situations confronting counterpart A before swap Situations confronting counterpart B before swap Counterparty a: BBB .

• Ngân hàng - Tín dụng
• International financial management
• Bài giảng International financial management
• Tài chính quốc tế
• Currency swaps
• Quản lý tài chính quốc tế
• Lecture International financial management
• International financial markets
• Foreign exchange market
• International money market
• Financial statement
• International trade transactions
• Financial management
• Fundamentals of financial management
• Financial statement analysis
• International bond market
• International equity markets
• International trade finance
• Multinational cash management
• International equity financing
• International capital market equilibrium
• International capital budgeting
• The foreign currency hedging decision
• International banking
• Money market
• International portfolio investment
• Balance of payments
• Current account
• Financial accounts
• International flow of funds
• Exchange rate determination
• Government influence
• Currency derivatives
• International tax environment
• Financial environments
• Multinational financial management
• Tăng trưởng của MNCs
• Direct foreign investment
• Multinational capital budgeting
• Financing international trade
• International cash management
• Lesson International financial management
• Management of translation exposure
• Translation Exposures
• Alternative currency translation methods
• Translation exposure
• International business
• International marketing
• International operations management
• International strategic management
• International strategic alliances
• Exchange rates
• International Fisher Effect
• Purchasing power parity
• International diversification
• International project
• Initial investment
• Lecture International business
• International environmental forces
• Organizational environment
• Financial management decisions
• International flow
• International arbitrage
• Interest rate parity
• Relationships among inflation
• International monetary system
• International parity relationships
• Forecasting foreign exchange rates
• International financial
• Managing transaction exposure
• Country risk analysis
• Lecture Multinational financial management
• International banking and money market
• International banking services
• Capital adequacy standards