Fixed Income Suite

This modularized suite serves as an essential introduction to the fixed income markets. It benefits those new to the bond market, as well as those in related areas of the business seeking to expand their knowledge.

This program is designed to take a comprehensive look at the whole spectrum of the fixed income market. Participants will learn the characteristics of corporate debt, government and asset-backed securities, and convertible stocks and bonds, covering theories, techniques and real-life applications.

07-Jul-2008 -- 11-Jul-2008New YorkUSD$4675
NY Institute of Finance - Midtown9:00am - 4:30pm Instructional Method:
Group-Live
Instructor(s): [ Various Instructors; ] Mon Tue Wed Thu Fri Level: Intermediate
CPE Credits: 36.0

28-Jul-2008 -- 01-Aug-2008StamfordUSD$4675
NY Institute of Finance - Stamford, CT9:00am - 4:30pm Instructional Method:
Group-Live
Instructor(s): [ William Addiss; ] Mon Tue Wed Thu Fri Level: Intermediate
CPE Credits: 36.0

08-Sep-2008 -- 12-Sep-2008ChicagoUSD$4675
NY Institute of Finance - Chicago9:00am - 4:30pm Instructional Method:
Group-Live
Instructor(s): [ Douglas Carroll; ] Mon Tue Wed Thu Fri Level: Intermediate
CPE Credits: 36.0

15-Sep-2008 -- 19-Sep-2008New YorkUSD$4675
NY Institute of Finance - Downtown9:00am - 4:30pm Instructional Method:
Group-Live
Instructor(s): [ Various Instructors; ] Mon Tue Wed Thu Fri Level: Intermediate
CPE Credits: 36.0

03-Nov-2008 -- 07-Nov-2008New YorkUSD$4675
NY Institute of Finance - Midtown9:00am - 4:30pm Instructional Method:
Group-Live
Instructor(s): [ Various Instructors; ] Mon Tue Wed Thu Fri Level: Intermediate
CPE Credits: 36.0

17-Nov-2008 -- 21-Nov-2008StamfordUSD$4675
NY Institute of Finance - Stamford, CT9:00am - 4:30pm Instructional Method:
Group-Live
Instructor(s): [ Various Instructors; ] Mon Tue Wed Thu Fri Level: Intermediate
CPE Credits: 36.0

Newcomers to the bond markets, institutional sales staff, sales and capital markets assistants.
No advance preparation required.
Students will be able to:
  • Understand the products of the Treasury Marketplace
  • Use of Treasury Securities as a Benchmark
  • Understand the structure of Corporate Bonds
  • Understand the MBS Marketplace, including GNMA's and CMO's
  • Understand the role of the FOMC, and monetary policy
Financial calculator required.
Day 1: Fixed Income I - Debt Securities Overview

Bond fundamentals

  • Par value
  • Maturity
  • Interest rate
  • Interest payment

Bond pricing

  • Percentage values
  • Quotation conventions
  • Converting prices to dollar amounts
  • Premium price

Accrued interest

  • Standard payment dates
  • Trade date and settlement date
  • Different market conventions for treasuries
  • Accrued interest calculation

Yield calculations

  • Yield vs. return vs. interest rate
  • Nominal yield
  • Current yield
  • Real yields
  • Price and yield
  • Yield to maturity

The corporate bond market

  • Types of issuers
Utility; Transportation; Financial; Telecommunication; Industrial

Structure of an issue

  • Secured vs. unsecured bond
  • Senior vs. subordinated bond
  • Callability
  • Structure of the call feature
  • Sinking fund
  • The indenture
  • Notes vs. bonds

Credit risk and credit ratings

  • Credit rating agencies
  • Investment grade vs. high yield bonds

Bond Underwriting

  • The Securities and Exchange Commission
  • Primary vs. Secondary market
  • The underwriting process
  • Pricing and marketing the issue
  • The closing
  • Rule 41

U.S. government securities & agency issues

  • Types of issues
  • Primary government security dealers
  • The treasury auction
  • The bidding process
  • The secondary market
  • The Government securities yield curve
  • The market for U.S. government agency issues
  • Backing by the federal government

Municipal Securities

  • Definition
  • Taxation
  • Types of issues
  • Credit risk and credit ratings
  • The underwriting process
  • The secondary market
  • Tax Reform Act of 1986

Day 2: Bond Math

Fundamental Concepts in Fixed Income Mathematics

  • Interest rates: yields, prices, discount rates and rates of return
  • Simple versus compound interest and compounding conventions
  • Time value of money: present value and future value

Fixed Income Price, Yield and Interest Conventions

  • Pricing of coupon and zero coupon bonds and discount securities
  • Accrued interest calculations and day count conventions
  • Yields, nominal, current, to maturity and to call: calculation and interpretation

Fixed Income Analytics

  • Total return (horizon) analysis
  • Types of yield curves
  • Spot rates and spot rate curves: determination and applications
  • Forward rates: determination, interpretation and applications
  • The Fed, the yield curve and the bond market

Bond Price Volatility

  • Duration as a measure of interest rate risk
  • Types of duration (modified, effective and dollar) and their application
  • Duration and convexity of non callable bonds
  • Duration and convexity of callable bonds

Day 3: Fixed Income II - Historic Perspectives of Interest Rates

Economic factors affecting interest rates

    Role of the Federal Reserve in affecting monetary policy

      Role of the primary dealers

        Treasury instruments

        • Treasury bills
        • Treasury notes
        • Treasury bonds
        • The auction process
        • Secondary trading
        • When issued trading
        • Role of the bond broker
        • Strips

        Valuing/pricing bonds

        • Current yield
        • Yield to maturity

Day 4: Fixed Income II - Corporate Bonds

Securities Act of 1933

    Investment banking

      Understanding credit risk

        'Ugly' features

          Municipal bonds

          • General obligations and revenue bonds
          • Insurance
          • After tax yield (ATY) and taxable equivalent (TEY)

          Asset-backed securities

          • Mortgage-backed instruments
          • GNMA's
          • CMO's
          • Credit card receivables

Day 5: Yield Curve Analysis

Introduction and Overview

  • Yield Curve Fundamentals
  • Financial and Economic Implications
  • Interpreting the Shape of the Curve, Supply, and the Business Cycle
  • Various Curves Risk Free Curves(

Types of Curves

  • Corporate
  • Mortgage
  • Credit

Bond Pricing, Yields and Rates of Return

  • Understanding Yields ( YTM, Current, YTC)
  • Fixed Income Pricing Conventions ( Internal Rate of Return)
  • Demystifying Duration

Analysis of Risk and Return

  • Looking at Non-Parallel Shifts in the Curve
  • Trading Applications: Trading the Curve
  • Portfolio Applications

Clients who register for this course will receive a complimentary 6 month subscription to the Financial Times and FT.com. The Financial Times is the world's most respected financial newspaper providing a broad assessment on finance, business and the industrial sector. Subscriptions will start within 6-8 weeks of the application process, and are limited to one per client. For questions about your subscriptions call 800-628-8088 or email uscirculation@ft.com. US and Canada enrollees only.

Lunch included for all students taking day classes.