FLOATING — WHAT THE MARKET DID fixed — what Atlas agreed to pay, every quarter, whatever happened one payment per date, and the direction is not always yours

A workbook for practising lawyers · English law

Derivatives

Swaps, caps and the master agreement — explained the way a file explains them. Atlas borrowed at a floating rate to buy a company, swapped that rate for a fixed one with its own arranging bank, and two years later discovered that the swap did not end when the loan did. Follow that file from the first board paper to the last wire, with the full training master agreement to read clause by clause.

Chapter 1 is free to read now — the whole first quarter of the file. The edition unlocks the other fourteen chapters, the full master agreement, and the forty-question exam.

Chapter 1 free 5 modules 15 chapters 15 chapter tests 40-question final exam No pricing models

How this workbook works

01

No pricing models

We never price a swap; we read one. The numbers are the file's own — two legs, the days, the netted line — and the Hedge Sheet's figures appear in every chapter, so you follow the money with a pencil, not a model. No discount factors, no Greek letters, and every percentage says what it is a percentage of.

02

One sheet, all the way through

Every chapter opens and closes on the same Hedge Sheet: the loan, this quarter's payment, and what the swap is worth today. You watch a value become a demand for cash, and then a bill.

03

Test yourself

Every chapter ends with a 10-question test (pass mark 8). Finish with a 40-question final exam. Your progress is saved to your Solon Press profile.

The case: hedging a €35,000,000 acquisition loan

November 2026. Atlas Payments Group plc, a London payments group, has just drawn €35,000,000 at a floating rate to pay for Solaris Digital Assets Europe Limited, the Irish crypto-asset firm it was buying, and its board would rather know what the next five years cost than find out quarter by quarter. So on the morning the loan's first rate is fixed, Atlas signs a swap with Caldermere — the bank that arranged the loan, now wearing a different hat — and buys a cap on the rest. This workbook follows what happens next: the quarter the rate moved the wrong way, the morning a prepayment turned value into cash, the Monday the bank asked for €290,000, and the refinancing that cost €668,000 to leave a hedge nobody remembered signing.

THE HEDGE GOES ON Nov 2026 · 3% fixed CLOSE-OUT Dec 2028 · €668,000 Value becomes cash May 2027 · a partial unwind The collateral call May 2028 · €290,000 to the bank
Two years of one hedge — and the four moments a junior is asked to explain.

The full master agreement is on this site — the Schedule where the fights happened, the Collateral Annex, three confirmations and the close-out statement — and chapters link straight into its clauses. The loan being hedged is the one our finance workbook documents, for the acquisition our M&A workbook papers.

The modules

Reference shelf

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