Management of swaps, IRS and swaptions
One of the main characteristics of riskart is the management of any instrument with a cash flow plan, such as swaps in general but also a particular focus on Interest Rate Swaps (IRS).
The main objectives of the back office in the management of IRS are generating a correct cash flow forecast plan and accurately regulating cash flows on the effective date.
In addition, riskart can manage any innovative type of swap proposed by the market by means of a few minor changes in the customization of the IRS.
The system also manages swaptions, option that have an IRS as an underlying asset.
The swaption is a structured instrument that was developed from the combination of these two derivatives and, on the date of maturity, if exercised, leads to a new swap. The swaption, like any other option, can also be abandoned and exercised in cash or settled for payment.
