 |  Money and Capital Markets: Financial Institutions and Instruments in a Global Marketplace, 8/e Peter Rose,
Texas A & M University
Interest Rate Forecasting and Hedging: Swaps, Financial Futures, and Options
Chapter Objectives
| You will see the possible benefits, but also the challenging problems someone
faces when they attempt to forecast market interest rates. |
| | | | You will discover why financial analysts today usually choose hedging against
losses from changing interest rates rather than attempting to forecast interest
rates or the prices of financial assets (such as stocks and bonds). |
| | | | You will explore several of the most popular tools currently in use to protect
borrowers and lenders from losses due to movements in market interest rates,
including interest-rate swaps, financial futures, and option contracts. |
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2003 McGraw-Hill Higher Education