Advanced Strategies for Mastering Interest Rate Swap Portfolios
Interest rate swaps (IRS) have evolved beyond basic hedging tools into sophisticated instruments for portfolio optimization. While the fixed-for-floating structure tied to benchmarks like SOFR remains foundational, top-tier financial professionals now deploy specialized strategies to manage risk and capitalize on market movements.
The true value emerges not from standalone swaps but from strategically curated portfolios aligned with broader financial objectives. Ten advanced techniques—ranging from curve positioning to cross-currency applications—enable institutions to transform passive interest rate management into active portfolio engineering.