The Fixed Income Instruments course delves into credit risks associated with bonds, credit ratings, and the specific risks associated with government debt and high-yield bonds.

US$73 per 365 days

 

What is Fixed Income:

The global financial crisis taught us many things, not least that the world has a voracious appetite for debt. Governments, firms, and individuals took on a sea of debt – many ultimately drowned in it, while some clung on thanks to unprecedented rescue operations.

Bonds are just one form of debt, but a crucial one. Largely shunned in the past by the mainstream media, which focused more on equity markets, the crisis catapulted fixed income markets onto the front pages. But while the ordinary person may not have known about the influence of debt markets on the global economy, the financial community was already well aware. Bonds have long been a critical source of finance for governments, corporations, and other borrowers. And the source of these borrowed funds is institutional and individual investors who are attracted to bonds for their huge array of risk and reward profiles.

It's no surprise, then, that the global debt securities market is vast, estimated at around USD 100 trillion in terms of debt outstanding (nearly double that of global stock market capitalization). The scale and influence of the fixed income market are beyond dispute.

Why it is important:

The bond market may be intimidating to some people, but – as this course will show – it doesn't have to be.

If you want to understand how the market works, then you need to begin with the fundamental concept of a bond. Reduced to its most basic level, a bond is merely a type of “IOU.” This rather banal statement lies at the heart of all the various bond markets. If your knowledge of bonds is limited, you’ll be glad to know that this definition is the starting point for our course. But for those of you with more experience and knowledge, there’s plenty in the course as well.

What will you learn:

  1. Bond Basics: Principal, Coupon, and Maturity
  2. Domestic & International Bond Markets
  3. Role of Credit Rating Agencies
  4. Market Risks
  5. Investment Grade Bonds
  6. Floating Rate Notes (FRNs)
  7. Covered Bonds
  8. Hybrid Bonds & Contingent Convertibles
  9. Bond Credit Ratings

Target audience:

Recruits to banking and financial institutions, fund managers, custodians, operations and support staff, institutional salespeople, legal and compliance executives, systems, and IT staff.

Curriculum:

  1. Bond Basics Principal Coupon and Maturity
  2. Domestic and International Bond Markets
  3. Bonds Market Risk
  4. Role of Credit Rating Agencies
  5. Sovereign Debt Characteristics
  6. Investment Grade Bonds
  7. High-Yield Bonds Basics
  8. Floating Rate Notes (FRNs)
  9. Asset Swaps (Synthetic FRNs)
  10. Structured Notes and MTNs Principles
  11. Asset-Backed Securities Principles
  12. Covered Bonds
  13. Hybrid Bonds and Contingent Convertibles (CoCos)
  14. Bond Issuance Auctions
  15. Bond Basics Price and Yield
  16. Bond Basics Market Participants
  17. Bond Issuance
  18. Bonds Credit Risks
  19. Bond Credit Ratings
  20. Government Debt Risks
  21. High-Yield Bonds Analysis
  22. Zero-Coupon Bonds
  23. Structured Notes and MTNs Types
  24. Asset-Backed Securities Types
  25. Bond Issuance Syndication

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