About IRS, NDIRS and CCS
Posted: November 29th, 2008, 5:22 am
I could understand why FX traders trade spot, forward, but why they also trade swap?...For instance, GS AeJ Swap team would trade NDIRS on CNY, MYS, and common IRS on SGP, KRW.. What's the purpose behind trading them? facilitating client flow? I think by trading forward and spot the view on the currency could be fully monetized already...Concerning the specification of Non-Deliverable IRS, is that like both two party in the IRS pay the interest denominated in USD? If so, what is the exchange rate used for, saying the USD/CNY? the NDF exchange rate for same maturity NDF?Thanks very much! I'm gonna have an interview w/ an Asia EM FX trading team...