PRMIA Related Exams
8010 Exam
An investor enters into a 5-year total return swap with Bank A, with the investor paying a fixed rate of 6% annually on a notional value of $100m to the bank and receiving thereturns of the S&P500 index with an identical notional value. The swap is reset monthly, ie the payments are exchanged monthly. On Jan 1 of the fourth year, after settling the last month's payments, the bank enters bankruptcy. What is the legal claim thatthe hedge fund has against the bank in the bankruptcy court?
Which of the following is not a tool available to financial institutions for managing credit risk:
For a given notional amount, which of the following carries the greatest counterparty exposure (assuming the same counterparty credit rating for each):