Bond Markets - An Introduction: VIRTUAL DELIVERY

This one day course will give you a thorough introduction to the fixed income market. From vanilla bonds to an overview of bond risk management, this course provides an understanding of the product ranges and how market professionals analyse and price fixed income instruments.
- Case studies and illustrations are used to demonstrate the product applications
- No prior knowledge or experience is required

This course will enable you to:
- Gain a deeper understanding of global fixed income markets
- Know how bonds work and the terminology used in the bond markets
- Provide a full understanding of the mechanics and cash flows of bond
- Learn the main concepts of bond pricing and how they work in practice
- Understand the market conventions for quoting price and yield
- Identify the main risks associated with bond markets
- Examine the measures of sensitivity and interest rate risk

This virtual course is one of the ICE Education LIVE programs. We provide two phases to the course:
1. Live Virtual Sessions: Trainer led live video sessions (as per the outline below). These are short focused sessions with practical activity and interaction throughout.
2. Post-course: The live video clinic session is scheduled for one week post course for any learning points you'd like to revisit.
All course payments must be received one day prior to the start date

Course Information

Price £895 + VAT
Duration 1 day
Location Virtual
Available Dates

Who Should Attend

As the title suggests, this course is aimed at (currently) non-traders with little or no existing knowledge of this subject area.

Booking Information

Tel: +44 (0) 20 7065 7706

Course Content

The course will consist of the following content:

Session 1: Bond Fundamentals

  • What is a bond?

Who issues and invests?

  • Bond characteristics

o Coupon structures -fixed vs floating

o Government vs. corporate bonds

o Senior vs. subordinated issues

  • The capital structure explained

o When an issuer defaults- who get paid out first

Session 2: Credit Ratings

  • The role of the rating agencies and their rating scales
  • The ratings methodology and process

o True vs. market-implied spreads and default probabilities

o Intuitive explanation of discrepancies between ratings and market spreads

Session 3: Bond Pricing

  • Clean vs. dirty pricing

o Accounting for coupon accruals between contractual payments dates

  • The bond price as the discounted sum of cash flows
  • Bond quotations -the price, the yields and the different spreads used
  • Understanding the price-yield relationship of bonds

o The bond yield (Yield-to-Maturity) defined

o Pitfalls of yield as a measure of value

  • Pricing as sum of discounted cash flows

o Pricing FRNs and the discount margin concept

Session 4: Bond Risk Analysis

  • Bond risk identification

o The main factors driving the bond price

  • Measures of bond price sensitivity
  • Macaulay Duration and Modified Duration
  • Factors driving Modified Duration
  • Introducing the PV01 (Present Value of a Basis Point) and Dollar Duration
  • Calculation and interpretation of duration
  • The non-linear properties of duration -introducing convexity