The Introduction to Fixed Income training course is an overview of the fixed income securities designed for anyone seeking a solid understanding of fixed income securities and financial markets.
In this instructor-led, live training, participants will learn the key features of financial markets and how trading takes place in these markets. We start with an overview of financial markets and terminologies, trading lingo, and conventions used to describe their activites. Then we look at the why and how of investing in various types of financial instruments. Some of the specific topics include trading strategies, risk management and real-world case studies to examine the persons, institutions and strategies behind the investments in the financial markets.
Audience
- Business managers
Format of the course
- Part lecture, part discussion, and hands-on exercises
What is Fixed Income Securities?
Types of Fixed Income Securities
- Government Bonds (Billds, Notes, Bonds)
- Corporate Bonds
- Zero Coupon Bonds
- High Yield Bonds
- Medium Term Notes
- Commercial Paper
- Structure Note
- Asset Backed Securities
- Mortgage Backed Securities
Fixed Income vs Equity
- What is Equity
- What is the difference between Fixed Income and Equity
Structure of Fixed Income Market
- Introduction to the Fixed Income Market
- Major players
- How to buy bonds
Basic Features of Bonds
- Maturity
- Par Value
- Coupon Rate
- Currency Denomination
Bond Indenture and Covenants
Legal, Regulatory and Tax Considerations
- International bonds
- Government bonds
- Tax Considerations
Fixed Income Risks
- Interest Rate Risk
- Reinvestment Risk
- Inflation Risk
- Credit/Default Risk
- Rating Downgrades Risk
- Liquidity Risk
- Volatility Risk
- Exchange-rate Risk
- Event Risk
Pricing of the Fixed Income Securities
- How to determine a fair price
- Features of a bond and yield measures
- Basic Calculation of a bond price
Introduction to Fixed Income Valuation
- Bond pricing with a market discount rate
- Relationship between the bond price and bond characteristics
- Pricing Bonds
- Flat Price and Full Price
- Matrix Pricing
- Yield measures for fixed-rate bonds
- Discount Basis yield and Add On Rate
- Maturity structure of interest rates
- Forward rate and Spot rate
- Yield Spreads
Principal Repayment Structures
- Bullet Bond
- Fully Amortised Bond
- Partially Amortised Bond
Coupon Payment Structures
Bonds with Contingency Provisions
- Callable Bond
- Putable Bond
- Convertible Bond
Fixed Income Derivatives
- Credit Default Swaps
- Interest Swaps
- Inflation Swaps
- Bond Futures
- Interest Rate Futures
- Forward Rate Agreements
Introduction
Overview of Financial Markets
Financial Markets Regulation and Framework
- Basel I, II, III, MIFID 1 and 2
- SEF and the Relation to E-trading
Financial Products, Asset Classes and Markets
- Credit (Bonds CDS)
- Interest Rates Derivatives
- FX (Foreign Exchange Derivatives NDFs and DFs)
- FX Options
The Role of the Stock Exchange
Trade Processing Cycle and Settlement
Managing Trading Books
Risk Management
Different Types of Stock Exchange Investors
A Day in the Life of a Trader
Summary and Conclusion