Product details

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Case
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Reference no. 9A96B010
Published by: Ivey Publishing
Originally published in: 1996
Version: 2002-03-13
Length: 23 pages
Data source: Field research

Abstract

The treasurer of Royal Bank Mortgage Corporation proposes a new residential mortgage product whereby the Royal Bank would use its derivative technology expertise to marry an interest rate cap with a variable rate mortgage. Key issues to be addressed are the design and the demand of the product and the cost to hedge the capped mortgage. As well, the risks and exposures to Royal Bank would require careful consideration before any decision is made.
Location:
Industry:
Size:
Large

About

Abstract

The treasurer of Royal Bank Mortgage Corporation proposes a new residential mortgage product whereby the Royal Bank would use its derivative technology expertise to marry an interest rate cap with a variable rate mortgage. Key issues to be addressed are the design and the demand of the product and the cost to hedge the capped mortgage. As well, the risks and exposures to Royal Bank would require careful consideration before any decision is made.

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Location:
Industry:
Size:
Large

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