Course description
Interest Rates and Fixed Income Markets
Theory and practice behind corporate and government bonds
In our two-day training you will explore the fascinating world of fixed income securities and interest rate markets. We will start by reviewing the basic building blocks of yield curves and bond math and build our way up to interest rate swaps and credit derivatives.
There are no prerequisites for this course – even though some basic understanding of financial markets would be helpful, it is not required.
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Upcoming start dates
1 start date available
Suitability - Who should attend?
- Private traders and investors, looking to learn about bonds and interest rate markets.
- Professionals within the financial industry or those providing services to the financial sector.
- Professionals performing financial functions in non-financial industries, such as corporate treasury, accounting, and investor relations.
- Students, preparing for an upcoming internship or starting their careers in finance.
- Anyone working in or looking to understand fixed income markets.
Outcome / Qualification etc.
What will you learn?
By the end of the course, you will:
- Gain a solid understanding of fixed income markets, its major players and various interest rate products.
- Recognize how compounding frequency impacts the total interest earned.
- Learn about various yield curve trading opportunities and how they can be exploited.
- Know the relationship between interest rates, forward rates and swap rates.
- Appreciate the specifics of government bonds and corporate debt.
- Understand the role Central Banks play in fixed income markets.
- Find out how to price interest rate and cross currency swaps.
- Be able to construct a complete interest rate curve using Libor rates, Eurodollar futures and swap rates.
- Develop an intuitive and mathematical understanding behind bond duration and convexity.
- Learn how Credit Default Swaps can be used to protect against bond defaults.
- And much more!
What will you get upon completion?
- Formal completion certificate.
- Course notes and materials.
- Follow-up support – ability to ask questions and seek further clarification, if needed.
- 20% OFF any future courses you wish to attend.
Training Course Content
Day 1:
- Time Value of Money and Bond Securities:
- Discounting and compounding.
- Net Present Value (NPV) and Internal Rate of Return (IRR).
- Zero-coupon, fixed-coupon and floating-coupon bonds.
- Bond math.
- Yield to maturity.
- Duration and convexity.
- Yield Curves:
- Term structure of interest rates.
- Theories behind the yield curve.
- The normal yield curve.
- Downward slopping yield curve.
- Government and corporate yield curves.
- Yield curve strategies and trades.
- Fixed Income Market Conventions:
- Quotation and market standards.
- Interest rate benchmarks and reference rates.
- Central Banks.
- Credit ratings and rating agencies.
- Investment grade, high-yield and junk bonds.
- Domestic and International Money Markets:
- Interbank market.
- Treasury bills.
- Commercial paper.
- Certificates of deposit.
- Repos.
- Government and Sovereign Debt:
- Overview of sovereign debt.
- Government bond risks.
- US Treasury bonds and yield curve.
- European and international debt.
- Emerging Market debt.
- Eurobond market.
Day 2:
- Corporate Bonds:
- Corporate bond risks.
- Redemption types and bond features.
- Convertible bonds.
- Credit spreads.
- Interest Rate Swaps:
- Pricing and valuation of Interest Rate Swaps.
- Comparative advantage theory.
- Quote conventions.
- Cross-currency swaps.
- Spread and fly trades.
- Extending the Yield Curve:
- Treasury and Bond Futures.
- Eurodollar Futures.
- Libor zero curve or a swap zero curve.
- Bootstrapping method.
- Sourcing short-term, medium-term and long-term rates.
- Fixed Income Derivatives:
- Forward Rate Agreement (FRAs).
- Interest rate caps and floors.
- Swaptions.
- Credit Default Swaps.
- Mortgages and securitization.
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