Yin & Yang
a swap negotiation case study
New York University
This swap negotiation simulation is designed to emphasize the mechanics and principles of interest rate swaps and currency swaps.
Four teams are involved:
Each team is given an information sheet on the basis of which a swap is to be negotiated. Your goal is to reach a successful conclusion, but not at the expense of losing money or taking excessive risk relative to the rewards. Doing a deal is highly desirable, but a bad deal is worse than no deal.
You may conduct negotiations by phone or face-to-face.
A "Results Report" sheet should be submitted by each team. One page should be enough. The report should contain specifics of the deal agreed to (or rejected), preferably with a sketch of who pays what to whom. At the top of each report please put Group and Team name (eg Group B, Sushi Bank), and the names of each team member.