I have to let swaps go

[Smarshy]

Swaps, I tried so hard to learn you. I read, and I read, and I read. I tried problems. I posted question on AF and had smart people try to help me.
But I’ve realized, I have to let you go.
Sure, I’ll still get the occasional “easy” question right, like how to calculate the fixed rate, or whether a person would want to enter a payer or receiver swap. But if I have to value you? Forget it. Just forget it. Next question.

 

[jeremyb]

That is exactly what I said

 

[zimzim78]

Yep, old boy “Swaps” told me to run and save myself…he’ll stay behind and take one for the team (but hopefully not all six)!

 

[maile]

count me in, I got my tush handed to me by Mr Swap
think I’ll reintroduce myself to Mr Porter instead

 

[mni]

that’s what she said too

 

[FXjunkie]

smarshy,
learn the basics, know some of the mechanics to answer Qs (I found concept checkers in Schweser helpful)…..failing that, move on and don’t let topics you can’t figure out drain your confidence at this stage

 

[Sponge_Bob_CFA]

I’ll stay behind and take one for the team.

 

[Sponge_Bob_CFA]

Unless it is a currency swap, then I’m outta there too.

 

[akanska]

I think if you have a solid understanding of the risk-reward, payoff, hedging, etc. for the derivatives you’ll sneak by w/ a score that won’t break you (as long as the other topics are solid).
eg- know that to buy/ sell when underlying is over/underpx’d
know what swap/ swaption will hedge a certain CF liability
… stuff like should get us ~ 50%… I hope. I have yet to see a vignette that has 6 payoff/ rate calculations.

 

[Black Swan]

I like swaps.

 

[Sponge_Bob_CFA]

We don’t care what you do on craigslist, Black Swan.

 

[CFAdetroit]

Me too. drop it like it’s hot.

 

[LongOnCFA]

swaps aint that bad..just remember the value of each side is just the present value of future cash flows. Net both sides out, and the side with the + wins.
to get the rate: 1-most recent discount factor/ (factor1+…+most recent discount factor).
discount factor= 1/(1+spot rate)

 

[CFAdetroit]

True. but when you use just about 2% of the CFA Level II material in your everday job, it’s pretty tough to have every concept nailed down when you are starting from scratch most of the time learning something. Sure there are some that can do it, I am just not one of them…
…Times like these I wish my name was Will Hunting.

 

[cfasf1]

it’s not your fault. it’s not your fault. it’s not your fault.

 

[3_letters]

Not only did Swaps get punted…..so did her ugly sisters FRAs, Futures, and Forwards…..
Oh, and I drop kicked her dad…Mr. Black.

 

[Sponge_Bob_CFA]

Dropping all those is a risky strategy, 3_letters.

 

[JoeyDVivre]

So 3_letters has just punted on $500,000,000,000,000 worth of securities. Yeah, you should become a charterholder and not know about those.

 

[cfasf1]

he’s not going to skip those.

 

[3_letters]

sarcasm is lost online…..