IDEAS home Printed from https://ideas.repec.org/h/elg/eechap/19966_9.html
   My bibliography  Save this book chapter

Financial engineering

In: State and Local Financial Instruments

Author

Listed:
  • .

Abstract

This chapter details the ways state and local governments utilize financial derivatives in conjunction with their municipal securities to manage their borrowing costs. The chapter begins by discussing financial derivatives in general and then detailing the most prevalent type of derivative used by state and local governments, the interest rate swap. It proceeds to provide a technical analysis related to the use, valuation and risks associated with interest rate swaps. It then offers some best practices for the use of financial derivatives as advocated by the Government Finance Officers Association and as informed by a case study of a municipality's use of interest rate swaps. The chapter concludes with an overview of the impact of Dodd-Frank on the use of financial derivatives by subnational governments.

Suggested Citation

  • ., 2021. "Financial engineering," Chapters, in: State and Local Financial Instruments, chapter 9, pages 142-151, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:19966_9
    as

    Download full text from publisher

    File URL: https://www.elgaronline.com/view/9781800370920.00015.xml
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:elg:eechap:19966_9. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Darrel McCalla (email available below). General contact details of provider: http://www.e-elgar.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.