Course description
This intensive 1-day course provides a comprehensive exploration of inflation-linked bonds and derivatives, with a particular focus on the UK market. Participants will begin by understanding how inflation is defined and measured, exploring the differences between key indices such as the Retail Price Index (RPI) and the Consumer Price Index (CPI). The course will also cover the typical cash flow structures used in index-linked securities.
A detailed examination of UK Index-linked Gilts follows, highlighting the differences between old-style and new-style quotation conventions, as well as methods for calculating the implied breakeven inflation rate. Additionally, the corporate bond market will be explored, with a focus on the role of Limited Price Indexation (LPI) in influencing pension fund activities.
In the afternoon session, attention shifts to inflation derivatives. Key topics include the mechanics, applications, and pricing of inflation swaps, along with caps and floors. Participants will also gain an intuitive understanding of the convexity adjustment in Year-on-Year (Y-o-Y) swaps.
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Suitability - Who should attend?
Who the course is for
- Front-office sales
- product control
- research
- Traders
- Risk managers
- Fund managers
- Project finance and structured finance practitioners
- Accountants, auditors, consultants
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Finex Learning
Finex Learning: Expert-Led In-House Training for the Financial Services Industry At Finex Learning, we specialize in organizing and delivering customized in-house training solutions tailored to the financial services industry. Our comprehensive programs focus on Capital Markets and are designed for...