If you show an affinity for crazy derivatives trades, you will get shown a lot of crazy derivatives trades. You may be tempted to interpret this as a sign of your savvy. Don’t.
"Right? A swap is a simple thing: I give you some money, and you give me a different amount of money, over and over again for several years. If I’m giving you a lot more money than you’re giving me now, then you will probably end up giving me a lot more money later. The complexity of the formulas doesn’t change that simple arithmetic.
What is the difference between now and later? Well, now is now. Later is later. Now, you are the treasurer of Metro do Porto, and you’re paid and praised and promoted based on how much money you can save the company. Later, you won’t be the treasurer of Metro do Porto, and you won’t care at all how much money the company is paying on its swaps. I mean, that’s the theory, though Metro do Porto’s snowballs snowballed so quickly that the guy who did them was probably still around to get fired.