Course description
Overview
This introductory one-day course aims to cover the key aspects of bond instruments and markets – explaining market terminology and structure, pricing, trading and investing - as well as to communicating market practice and lay a foundation of technical knowledge applicable to both the buy side and the sell side as well as those involved in bonds in other capacities. Topics like bond yields and duration are also introduced.
The objective is as much as possible to simplify some of the technical terminology around bonds and bond markets and give an intuitive feel for bonds and bond market concepts.
Who is this for?
This course will help those with little or no knowledge of bond and fixed-income securities to gain a good understanding of the intrinsic nature of the instruments and the markets on which they trade. It is particularly relevant for investment bankers, corporate financiers, corporate bankers, investment managers, analysts, brokers, investment advisors, operations and support staff and others involved with the bond markets for the first time.
What will you learn?
- Role of Bonds and Bond Markets in Finance
- Bonds distinguished from equities
- Bonds vs. Corporate loans
- Main participants in bond markets and how bonds are used by borrowers and investors
- Bond Markets – Overview
- Bonds defined
- Types and characteristics
- Bond market terminology and jargon
- Characteristics of the bond asset class
- How to interpret the bonds pages of the FT
- The major issuers
- Domestic and international markets
- Essentials of bond pricing and bond yields
- Clean and dirty pricing
- Running yield and Yield-to-Maturity (YTM/ GRY)
- The concept of the Yield Curve and its uses
- The UK Gilt Market and its key participants
- DMO, GEMMS, IDB
- Review of other main government bond markets (T Bonds, JGBs, Bunds etc.)
- Overview of Money Markets as they link to Bond Markets
- Credit Ratings and Credit Rating Agencies
- Introduction to security and bond covenants
- Meaning of credit ratings
- Intro to High Yield bonds
- Introduction to Asset Backed Securities, Securitisation and CDOs
- Factors driving bond markets
- Macroeconomic factors
- Relationship between interest rates and bond prices
- Introduction to the concepts of duration, modified duration and convexity (graphically only for convexity)
- Other types of bonds
- Depending on time and delegate interest, discussion of Floating Rate bonds, convertible bonds, hybrids etc.
Other related courses
Treasury - Introduction
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Suitability - Who should attend?
This course will help those with little or no knowledge of bond and fixed-income securities to gain a good understanding of the intrinsic nature of the instruments and the markets on which they trade. It is particularly relevant for investment bankers, corporate financiers, corporate bankers, investment managers, analysts, brokers, investment advisors, operations and support staff and others involved with the bond markets for the first time.
Training Course Content
Learning outcomes include obtaining a greater understanding of:Role of Bonds and Bond Markets in FinanceBonds distinguished from equitiesBonds vs. Corporate loansMain participants in bond markets and how bonds are used by borrowers and investorsBond Markets – OverviewBonds definedTypes and characteristicsBond market terminology and jargonCharacteristics of the bond asset classHow to interpret the bonds pages of the FTThe major issuersDomestic and international marketsEssentials of bond pricing and bond yieldsClean and dirty pricingRunning yield and Yield-to-Maturity (YTM/ GRY)The concept of the Yield Curve and its usesThe UK Gilt Market and its key participantsDMO, GEMMS, IDBReview of other main government bond markets (T Bonds, JGBs, Bunds etc.)Overview of Money Markets as they link to Bond MarketsCredit Ratings and Credit Rating AgenciesIntroduction to security and bond covenantsMeaning of credit ratingsIntro to High Yield bondsIntroduction to Asset Backed Securities, Securitisation and CDOsFactors driving bond marketsMacroeconomic factorsRelationship between interest rates and bond pricesIntroduction to the concepts of duration, modified duration and convexity (graphically only for convexity)Other types of bondsDepending on time and delegate interest, discussion of Floating Rate bonds, convertible bonds, hybrids etc.