Design
Structuring an Interest Rate Swap for a UK Infrastructure Fund
Overview
What this challenge is about.
You are a structured finance associate at a bank advising InfraBridge. Design a plain vanilla interest rate swap that converts the floating-rate liability to fixed. Provide the swap's fixed rate using current SONIA swap curve, calculate the net cash flows over the first 5 years, and assess the credit risk (CVA) and accounting treatment (hedge accounting vs. fair value). Success means the swap reduces interest expense volatility and qualifies for hedge accounting under IFRS 9.
The Brief
What you'll do, and what you'll demonstrate.
Structure an interest rate swap to hedge the floating-rate debt of a 10-year infrastructure project, ensuring alignment with project cash flows and accounting standards.
Earning criteria — what you'll demonstrate
- Price an interest rate swap using the SONIA swap curve
- Analyze the impact of interest rate swaps on a company's risk and financial statements
- Evaluate credit valuation adjustment (CVA) for swap counterparty risk
- Apply hedge accounting rules to qualify for IFRS 9 treatment
Program Fit
Where this fits in your program.
Sharpens the same skills your degree expects you to demonstrate.
Skills
Skills you'll demonstrate.
Each one shows up on your verified credential.
Careers
Roles this prepares you for.
Real titles. Real skill bridges. Pick the one closest to your trajectory.
Career mappings coming soon.