Swap and other structured products

Seminar paper from the year 2006 in the subject Business economics - Banking Stock Exchanges Insurance Accounting grade: A+ University of Westminster course: Financial Derivatives language: English abstract: The increased volatility in the financial products world has raised concern about newpossibilities of Risk Management leading into increased use of structured products. Creditderivatives are financial instruments to manage risk. They isolate such risk from theunderlying financial asset. This essay firstly is going to examinethe impact on swap products as a tool in Risk Management followed by an examination ofkey areas in structured products development that have experienced the strongest growth inthe last decade. For both types the current theory and pricing will be outlinedfollowed by a demonstration of some characteristic applications in Financial RiskManagement.