This course offers an overview of Swap Accounting. Starting with basic definition of swap, the course discusses different types of Swap instruments Hedge funds typically trade in and benefits of having exposure in swaps. The course further discusses accounting entries for Swaps, how to calculate Gain/Loss on swaps and how to show Swap Income and Open Swap Positions on a Fund’s Financials.

Topics Covered:

  • Overview of Swap
  • Different type of Swaps
  • Accounting entries for Swap Accounting
    • Opening and Closing a Swap position
    • Interest and dividend on Swap
    • Pricing
    • Calculation of Swap Income/Loss
  • Reconciliation with Counterparties
  • Swaps on Fund’s Financials
Learning Objectives
  • Explore Different type of Swap products.
  • Recognize benefits of Investing in Swaps.
  • Identify key elements of Swap PnL, pricing and reconciliation.
  • Familiarize with Accounting Entries necessary for Swap accounting.
Last updated/reviewed: August 26, 2024
Prerequisites
Course Complexity: Intermediate
Basic knowledge of Accounting (Journal entries, Trial Balance).
Basic understanding of how security investment works.
Education Provider Information
Company: Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact: For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Instructor for this course
  Course Overview CPE
Course Syllabus
INTRODUCTION AND OVERVIEW
  Learning Objectives2:30
  An Overview6:10
  Types of Swaps7:38
  Currency Swaps13:24
  Accounting Entries11:30
  Interest Rate Swap14:46
  Total Return Swap6:38
  Swap Financing8:08
  Summary2:04
CONTINUOUS PLAY
  Hedge Fund Accounting: Fundamentals of Accounting for Swaps1:12:48
SUPPORTING MATERIAL
  Slides: Hedge Fund Accounting: Fundamentals of Accounting for SwapsPDF
  Hedge Fund Accounting: Fundamentals of Accounting for Swaps Glossary/IndexPDF
REVIEW AND TEST
  REVIEW QUESTIONSquiz
 FINAL EXAMexam