Mastering Interest Rate Risk Strategy

Preface

In recent years we’ve seen many newspaper headlines reporting the mis-selling of interest rate derivatives and costly derivatives blunders. A key reason for these is that people don’t have a complete understanding of a firm’s interest rate risk and of the risks arising from the use of derivatives. The aim of this book is to solve that problem.

When encountering interest rate risk at the corporate treasury of firms, at banks, in consulting and in the academic world, I didn’t have a comprehensive analytical method that would support the establishment of a sound interest rate risk strategy. On the basis of my Ph.D. research on corporate financial risk management I decided to construct one. My goal was to establish a method that was academically ...