SUBSCRIPTION FOR 1 year

In Stock

Understanding Fixed Income Derivatives

What you will learn:

  1. Identify and distinguish between the different types of fixed income securities;
  2. Demonstrate how to apply derivative instruments to hedge the risks and enhance the returns of fixed income securities;
  3. Make use of analytic tools in bond portfolio management and interest rate risk management;
  4. Identify various sources of credit risk and apply structural models to estimate the risk;
  5. Critically evaluate structured products related to fixed income securities and derivatives.

US$52 per 365 days

Category:

Product Description

What are Fixed Income Derivatives:

Fixed income derivatives allow financial institutions to transfer the credit exposure of their bond positions to another party. In this way, they can separate the credit risk from the return flows on their bonds. However, as with all hedging, there is still a risk associated with the derivative position. Fixed income derivatives also allow fixed income managers to gain exposure to a particular asset with a relatively small outlay of money.

The course is designed to provide a description and analysis of fixed income securities.

It covers the broad topical areas of:
(i) the institutions, instruments, and operations of fixed income securities markets;
(ii) the analysis and valuation of fixed income securities;
(iii) the analysis of interest rates and term structure;
(iv) interest rate related derivative instruments and how to use these contracts to reduce risk exposure and enhance the yields of fixed income portfolios. Class lectures will focus on the theoretical aspects of these securities and will use currently offered fixed interest products to illustrate the theories.

Why it is important:

The course will introduce tools to explore the theoretical, empirical, and structural aspects of fixed income securities and their derivatives. These concepts and tools are useful to practitioners for investing, hedging, market-making, and speculating. The course will focus on exploring market conventions and the theoretical underpinnings of the subject. Spreadsheet and simulation exercises will be used to illustrate concepts and value bond instruments.

What you will learn:

  1. Identify and distinguish between the different types of fixed income securities;
  2. Demonstrate how to apply derivative instruments to hedge the risks and enhance the returns of fixed income securities;
  3. Make use of analytic tools in bond portfolio management and interest rate risk management;
  4. Identify various sources of credit risk and apply structural models to estimate the risk;
  5. Critically evaluate structured products related to fixed income securities and derivatives.

Target audience:

The course will provide training for those who join the treasury and trading departments of financial institutions and those who sit for professional examinations.

Related Products

0