Exotic Interest Rate Swaps: Snowballs in Portugal


Published: 8Feb2017

Authors: Vallee, B.,  Augustin, P.,  Rich, P.

Publications: Harvard Business Publishing 


This case explores a complex swap transaction implemented by Metro do Porto in 2007. It represents an opportunity to study fixed income derivative instruments, such as plain-vanilla swaps and structured swaps, as well as understand the opportunities and challenges of using innovative financial instruments. The public sector setting allows to discuss the political economy implications of such transactions.

Read full abstract: Harvard Business Publishing, January 5, 2017