The Definitive Treasury Playbook: Swaps as Essential Risk Management Tools
In today's volatile financial markets, swaps have emerged as indispensable instruments for institutional risk management. With over $165 trillion in interest rate swap transactions recorded by ISDA, these derivatives offer unparalleled customizability and long-term protection against market fluctuations.
Corporate treasuries must evolve beyond basic hedging strategies. The most sophisticated players now use swaps to establish proactive market positions rather than simply mitigating risk. This requires adopting a Total Cost of Ownership approach that considers both direct and indirect costs of swap implementation.