January 2017
Case
HBS Case Collection

Exotic Interest Rate Swaps: Snowballs in Portugal

By: Boris Vallee, Patrick Augustin and Philippe Rich

Format:Print
| Language:English
| Pages:14

Abstract

This case explores a complex swap transaction implemented by Metro do Porto in 2007. It represents an opportunity to study fixed income derivative instruments, such as plain-vanilla swaps and structured swaps, as well as understand the opportunities and challenges of using innovative financial instruments. The public sector setting allows discussion of the political economy implications of such transactions.

Keywords

Swaps; Public Finance; Structured Finance; Credit Derivatives and Swaps; Public Sector; Transportation Industry; Rail Industry; Portugal

Citation

Vallee, Boris, Patrick Augustin, and Philippe Rich. "Exotic Interest Rate Swaps: Snowballs in Portugal." Harvard Business School Case 217-050, January 2017.