Plain vanilla transactions

After the mandate letter is signed, the process of preparing all the relevant documentation starts. The length of time needed from the mandate to the issuance depends on the specific circumstances of the transaction, market conditions and the experience of the issuer, it can take from three days in the case of a plain vanilla bond issued under an MTN programme to six or even more months for a structured transaction. 

As noted earlier,a newly transacted interest rate swap denotes calculating the swap rate that sets the net present value of the cash flows to zero. Valuation signifies the process of calculating the net present value of an existing swap by setting its fixed rate at the current market rate. Consider a plain vanilla interest rate swap with the following terms ... 

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