Fixed Income Instruments and Markets

This course will provide delegates with a solid foundation in fixed income analysis.

Learning Outcomes:

• Gain an overview of bond & fixed income markets and the current trends in global issuance
• Determine a methodology to structure, price and position bond and fixed incomeinstruments to maximize investment, financing and risk management activities
• Develop an understanding of the syndicated loan process and how to create facilities to match client needs
• Examine how bond & fixed income instruments are rated and the implications of the rating
• Analyze yield curves and the implications for future interest rate movements
• Understand the differences between yield and return conventions in the fixed income market
• Calculate and use duration and convexity to measure risk and actively manage fixed income portfolios
• Customize complex interest rate swaps to meet client objectives
• Structure and price equity linked securities, structured debt products and other complex fixed income derivatives
• Construct interest rate caps and collars to manage financial riskn Define and analyze financing and arbitrage vehicles
• Determine the impact of a securitization transaction on a company's performance measurements tools

Day 1:

• Session 1: The Fixed Income Marketplace
• Introduction to Fixed Income Markets
• Treasury and Agency Securities
• Session 2: Overview of Corporate Debt Instruments
• Short and Medium Term Instruments Including
• The Syndicated Loan Market
• The Ratings Agency Process

Day 2:

• Session 1: Pricing & Valuing Fixed Income Instruments
• Bond Prices & Yields
• Understanding Yield Curves
• Bond Price Sensitivity
• Session 2: Fixed Income Derivatives
• Forward Rate Agreements
• Interest Rate Swaps
• Transaction Aspects of Swaps
• Interest Rate Futures
• Fixed Income Options
• Equity-Linked Securities

Day 3:

• Session 1: Advanced Swaps, Structured & Securitized Product
• Customizing Interest Rate Swaps – Beyond “Plain Vanilla”
• Structured Debt Products
• The Securitization Process
• Session 2: The Asset-Backed Securities (ABS) Market Define and discuss various financing and arbitrage vehicles, including:
• Mortgage-backed securities (MBS) and commercial mortgage-backed securities - (CMBS)