Financial engineering

.

Chapter 9 in State and Local Financial Instruments, 2021, pp 142-151 from Edward Elgar Publishing

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.

Keywords: Economics and Finance; Politics and Public Policy (search for similar items in EconPapers)
Date: 2021
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.elgaronline.com/view/9781800370920.00015.xml (application/pdf)
Our link check indicates that this URL is bad, the error code is: 503 Service Temporarily Unavailable

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:elg:eechap:19966_9

Ordering information: This item can be ordered from
http://www.e-elgar.com

Access Statistics for this chapter

More chapters in Chapters from Edward Elgar Publishing
Bibliographic data for series maintained by Darrel McCalla ().