Me? You gotta be winding me up?

P

pelzar

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Evening all...

It appears that somehow I have managed to get blag a second interview at a big IDB (when I say blag one of the directors plays at my Golf Club.)

Should I get the job i'll be on the inflation products desk (I know what you're thinking, the closet he's come to interest rate products is the minimum payment on his credit card, once a month, you'd be correct!) So I need the advice of you magnificently experienced brokers/traders on here...What should I be reading, what do I need to know, any good questions I should be asking etc...

No holding back on me, if you've got something to share; please do!!

Many Thanks

THE PELZAR!

P.S interest rate swaps?? Hey???
 
pelzar said:
Evening all...

It appears that somehow I have managed to get blag a second interview at a big IDB (when I say blag one of the directors plays at my Golf Club.)

Should I get the job i'll be on the inflation products desk (I know what you're thinking, the closet he's come to interest rate products is the minimum payment on his credit card, once a month, you'd be correct!) So I need the advice of you magnificently experienced brokers/traders on here...What should I be reading, what do I need to know, any good questions I should be asking etc...

No holding back on me, if you've got something to share; please do!!

Many Thanks

THE PELZAR!

P.S interest rate swaps?? Hey???
Click to expand...

Interest rate swaps? WTF.

Just don't mention pin bars ;)

Ask Arb or Arabian. They trade weird sh*t like that I think. Or at least they know about it anyway...

Good luck, ledge!!

You're gonna need it...

Although just trade them the same way as you did the FTSE and you'll be fine...that is to say...down a bowl of coco pops...watch the market open...exclaim in a loud voice..."f*ck me that's opened high hasn't it?"...sell 10 lots...and get every other trader coming up to you saying: "HOW DO YOU DO IT"?!
 
Hi Pelzar,

I don't know if it will help, but the exposure profile of an interest rate swap is like a hill.
The further you go out the bigger the stress test on the interest rate, but also the fewer outstanding coupons. Hence you have a rising potential loss as the interest rate risk dominates, eventually falling as the coupons roll out.

They might ask about the implied term structure of inflation from the prices of inflation-linked gilts, I suppose.

Regards,
Joey
 
Joey25 said:
Hi Pelzar,

I don't know if it will help, but the exposure profile of an interest rate swap is like a hill.
The further you go out the bigger the stress test on the interest rate, but also the fewer outstanding coupons. Hence you have a rising potential loss as the interest rate risk dominates, eventually falling as the coupons roll out.

They might ask about the implied term structure of inflation from the prices of inflation-linked gilts, I suppose.

Regards,
Joey
Click to expand...

What he said.
 
Sorry guy's, IRS's are seriously plain-vanilla instruments. Info freely available on t'interweb.
 
Yep - just look up Ir swaps and FX swaps. Chances are their dept deals with exotics too.

Might be worth looking up TARNS (target accrual redemption notes), CMS's, Power Tarns etc... all variations on a theme. There is enough info on the net to get some background info.
 
Hi pelzar,
I can't offer any useful advice (no change there then, Tim!) but I have to say how amused I am that you post on here asking 'us lot'! Fair play if it were me or any other home based retail trader asking the questions, but you're stuck in the middle of a prop' shop surrounded by pro's! Surely there must be someone at your firm who can point you in the right direction?
Best of luck to you anyway.
Tim.
 
hello boys...

1. I am not at Futex and 2. i'll be tading motherf*****s!

Many thanks!
 
What exactly is an 'inflation swap'?

If youre gonna say go and look on the internet...dont bother!!
 
What swaps are
A swaps contract is an agreement between two parties to “swap” one set of pre-defined future payments for a different pre-defined set, over an agreed period. The nature, term, frequency, currency, etc, of swaps are all, potentially, variables for negotiation. Thus in theory, any set of payments that can be explicitly defined can be swapped for any other.
There is a wide variety of swaps available, with the most important from a pension scheme perspective being the “interest rate” swap and the “inflation” swap.
• Under an interest rate swap, at an agreed future date, one party typically agrees to pay a fixed payment (eg based on an initial rate of interest) and the other party agrees to pay an amount based on a floating rate.
• For an inflation swap, a fixed payment is exchanged for a variable payment linked to a measure of inflation, such as the RPI.

Swap payments generally relate to a notional sum of money, called the “principal”.
Importantly, the two sets of payments being swapped initially are set to have equal market value, so no money changes hands (ignoring costs). At outset the fixed side of the swap simply reflects the market’s consensus expectations of the variable on the other side over the contract term. The swap may acquire value over time depending upon how closely experience matches initial expectations. For example, if actual inflation is higher than was expected at outset then an inflation swap will have a positive value for the party buying inflation protection (ie that will receive the RPI linked payment) and a negative value for the other.

Using swaps to cover interest rate and inflation risk allows greater investment freedom for a scheme’s actual assets – for example, any existing bonds, which would no longer be needed to limit interest rate and inflation exposure, could be substituted with other assets in order to seek potentially higher performance.
 
google >advanced search > pdf format >interest rate swaps :D the internet such a wonderful medium :p
 
dilesh23 said:
. . . the internet such a wonderful medium :p
Click to expand...
Correction dilesh:
1% of the internet is a wonderful medium, the other 99% is total _____ (insert expletive of your choice).
If anyone is in any doubt, here's a test. Do a Google search for 'business opportunities'. There will be pages upon pages of results. Now come up with just ONE that isn't total pony. It simply can't be done!
Tim.
 
thats why i like to search for pdfs, i have the mentality that millions of useless websites and pages will come up on a search result but generally if someones going to go through the trouble of having something in pdf format it might be a bit more reliable.... and on that note pelzar heres where i borrowed the information above from

http://www.lcp.uk.com/services/documents/IN_ldi2.pdf

and a few business opportunities ones for you

http://www.usherproject.org.uk/support/scenarios/growth.pdf

http://www.rbs.co.uk/content/corporate/international/usefulinfo/downloads/LB019640_RBS_BusOpp.pdf

Not to sure if anyone wants be taking business advice from RBS though :p like everything on the internet a handful of salt is needed
 
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