Question: Need help with an old test question. Thanks Question 4: Total Return Swap 10 Points 1) Describe two key risk types for Barclays? How can

Need help with an old test question. Thanks Question 4: Total

Need help with an old test question. Thanks

Question 4: Total Return Swap 10 Points 1) Describe two key risk types for Barclays? How can Barclays hedge these risks? 2) Describe two key risk types for LTCM? How can LTCM hedge these risks? 3) What is Barclays profit? 4) Why is LTCM leveraged? Question 4: Total Return Swap Figure 3ML + 43bps Barclays LTCM BondsTotal Return $200mm 3ML-22bpsCorp) Bonds owned by Barclays as Collateral Funding

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