Fixed Income Markets II - Day - Financial Training Course

Fixed Income Markets II - Day

Continuing on from Fixed Income Markets I, this course examines the evolving products, changing marketplace and growing sophistication of the fixed income market.

This program covers the core concepts of the fixed income marketplace including the banking system, interest rates, and the yield curve. Discusses trading desk psychology and current market conditions. Ideal for traders, sales assistants, capital market assistants and other fixed income specialists. This program will highlight the Fed (policy, intervention and goals, Fed funds, the Government dealer, repo and reverse repo), the money market (bills and other short-term instruments, treasury coupon issues), and the yield curve (spreads and arbitrage, the outlook for interest rates and economic statistics).

18-Apr-2012 -- 19-Apr-2012	Chicago	USD$2475
NY Institute of Finance - Chicago	9:00am - 4:30pm	Instructional Method: Group-Live
Instructor(s): [ Gregory Swenson; ]	Wed Thu	Level: Intermediate


13-Jun-2012 -- 14-Jun-2012	Toronto, Canada	USD$2475
New York Institute of Finance - Toronto	9:00am - 4:30pm	Instructional Method: Group-Live
Instructor(s): [ Douglas Carroll; ]	Wed Thu	Level: Intermediate


17-Jul-2012 -- 18-Jul-2012	New York	USD$2475
NY Institute of Finance - Midtown	9:00am - 4:30pm	Instructional Method: Group-Live
Instructor(s): [ Douglas Carroll; ]	Tue Wed	Level: Intermediate


12-Sep-2012 -- 13-Sep-2012	St. Petersburg	USD$2475
NY Institute of Finance - St. Petersburg	9:00am - 4:30pm	Instructional Method: Group-Live
Instructor(s): [ Douglas Carroll; ]	Wed Thu	Level: Intermediate


05-Dec-2012 -- 06-Dec-2012	New York	USD$2475
NY Institute of Finance - Midtown	9:00am - 4:30pm	Instructional Method: Group-Live
Instructor(s): [ William Addiss; ]	Wed Thu	Level: Intermediate

CPE CREDITS

14.0

Sales Personnel, junior research analysts, operations and systems staff, new entrants to fixed income markets, finance analysts and corporate bankers

No advance preparation required.

Students will be able to:

Understand and perform the mathematics underlying the fixed income market and understand the various measurements of value: yield to maturity, yield to call, yield to worst, discound yield vs. bond equivalent yield, horizon analysis
Understand and apply the concept of duration, as a measurement of volatility
Apply the Treasury Marketplace not only as an investment opportunity, but as a benchmark to price other products
Describe and analyze the features, benefits, risk, similarities and differences of specific fixed income products, including: mortgage-backed securities, corporate bonds, municipal bonds, asset-backed securities, collateralized debt obligations, credit default swaps, structured products, convertible bonds, and preferred stock
Identify appropriate clients for fixed income investing based on the benefits and risks of different products
Understand changes in the yield curve, its implications on the valuation of securities and portfolios
Explain he activities of rating agencies and the significance of their ratings
Understand trading strategies, hedging, and portfolio management

Fixed Income Markets I or equivalent knowledge. Financial calculator required.

"Instructor was very enthusiastic & knowledgeable on the subject."

"Great job addressing current market & issues. Great overall pictures of FI Mkts."

"IInstructor was excellent. Did a terrific job of explaining concepts while being very engaging."

"Instructor's practical & applied exeperience; practitioner & educated insight."

"The class is good and highly rewarding!"

Fixed Income Mathematics - Day

Fixed Income Mathematics - Evening

Yield Curve Analysis

Yield calculations Yield vs. return vs. interest rate Nominal yield Current yield Real yields Price and yield Yield to maturity Duration analysis Definition Calculation - explained Interpretation Limitations/advantages Modified Duration Application Yield analysis Impact of interest Sources of return Time value of money Measuring returns Re-setting the reinvestment rate Value of fixed income securities Yield as a value measure Yield to maturity - components Yield to maturity - assumptions Horizon analysis Bond pricing calculations of dollars Per bond basis Total principal Value as a basis point Definition Calculation Factors influencing price volatility Yield curves Definition of a yield curve Determinants of shape of yield curve Shape of yield curve and market expectations Spreads between yield curves The rating services Moody's Standard & Poor's (S&P) Fitch Investor's Services (FITCH/IBCA) External research analysis firms Research departments Uses for the ratings Ratings reflect the probability of timely payment Judgment - qualitative and quantitative Collective judgment approach Rating equality between rating agencies Compensation for rating services Various indenture provisions Call provisions Put provisions Sinking fund provisions Refunding Prefunding Additional security considerations Covenants of the obligation Third party guarantees Insurance or collateral Application/interpretation of ratings Investment decisions Comfort levels Short term securities vs. long term securities Contingent credit risk Trading environment Market areas Market players Organized exchanges Types of trades Trading conventions	Accrued interest Standard payment date (6 mos./dtd date) Accrued interest calculations Relationship of accrued interest and yield The treasury and money market Overview of the money market Function of the money market Characteristics Location of market place General description Participants The Federal funds market Importance of Federal funds Defined as a security Methods of Federal funds exchange Types of money market instruments T bills Negotiable and jumbo certificates of deposit Commercial paper Banker's acceptances Repurchase agreements and reverses Municipal short term instruments U.S. government markets Origin of the U.S. debt markets OTC market Principal business Specifications Size Structure Volume Spread narrower than other markets Tax implications Depository system Participants T Bills Size qualifications Discounting and calculations Maturity structure Speciality bills T Notes Size qualifications Pricing and maturity structure Basic notes and auction cycles Specialty notes T Bonds Size qualifications Pricing and maturity structure Auction cycles Strip securities History Dealer created proprietary zero coupon certificates Group of primary dealers began to issue TRs Treasury announced STRIP PROGRAM Specifications Trading specifications Flower bonds Primary market Closed auction - single rate auction Dutch auction - multi rate auction Secondary market Trading segmentation Trading day overview and week overview The municipal market Advantages to the issuer/borrower Tax considerations Features of municipal debt Legislative contraints
General obligation bonds Limited vs. unlimited tax Issuance limitations Voter approval Statutory limitations Revenue bonds Characteristics Payable from revenues No debt limitation Sources of revenue Other bonds Special tax housing bonds Lease rental short terms Moral obligation IDB and PCR Double barreled Primary market Structures of a borrowing Underwriting process Distribution tiers Syndicate restrictions Legislative restraints Secondary market Trading characteristics Trading desks Corporate bond general characteristics Classifications Public utilities Transportation Industrials - catch all Banks and finance companies International or Yankee issues Corporate debt maturity Interest payment characteristics Fixed income or rate bonds special payment Participation bond profits or asset appreciation Income bond contingent on sufficient earnings Zeros as a corporate vehicle Types of bonds Secured Unsecured Unsecured Debenture bonds Subordinated debenture Security for bonds Real property using a mortgage Personal property - may be pledged The type of security or lack of is usually indicated in title of the bond issue Secured bonds Mortgage bond Collateral trust bond Equipment trust certificates Convertible securities General overview Issuer's position Investor's advantages/disadvantages Terminology Determining various relationships Preferred stock General specifications Issue types and issuers Terms and features Fixed rate or variable Special features	Asset backed securities ABS support Credit enhancements Types of ABS other than mortgage History of the mortgage Traditional mortgage Government agencies Lenders Borrowers Insurance Types of alternative mortgages GPM ARM Formation of an MBS Originators Intermediaries Packing agencies Secondary market Pricing conventions Factoring Calculating principal amount outstanding Figuring invested dollars Yield determinants Half life FHA experience Speed Pre-payments Computing yield FHA experience PSA experience CPR Factors affecting paydown Convexity Economic Interest rate environment The CMO Packaging IO and PO strips WAC and WAM Tranches Credit Derivatives Markets participants Risks of credit derivatives Types of credit risk Credit default risk Credit spread risk Downgrade risk Credit derivatives conventions The basics Single name Default baskets Market terminology Conditions to payment Asset swaps Mechanics of an asset swap The asset swap - credit default swap basis Total return swaps Mechanics Pricing Credit default swaps Mechanics of single, portfolio, index and exotic CDSs Pricing
Structured products Credit linked notes Collateralized debt obligations Collateralized loan obligations Collateralized bond obligations Synthetic CDOs Risks of credit derivatives Credit Market Liquidity Legal Operations Typical asset movement scenarios (swaps) Riding the yield curve Substitution swpas (primary vs. secondary) Inter-market spread Rate anticipation Tax swapping Asset holding Long term investing view Short term investing view Volatility Return over time Trading strategies Transition from high to low yields Transition from low to high yields Hedging Buying and selling to market expectations Use of derivatives as cash substitutes Theory of hedging Portfolios and investing decisions The investment management process Setting investment objectives Establishing investment policy Selecting the portfolio strategy Selecting the assets Measuring and evaluating performance Overview of fixed income portfolio management Historical perspective Sources of return Horizon and yield curves Overview of risks associated with fixed income securities Bond specific Portfolio risk characteristics Portfolio management strategies Bond management techniques Active portfolio management Overview of the active portfolio management process Other strategies or tactics Examples of active portfolios Passive portfolio management Indexed bond funds: investing in the fixed income market Bond immunization: safe planning for future needs Dedicated portfolios: secure income to cover payouts Cash flow matching Case studies for fun Barings Bank Quick study in bad management and supervision Orange County Daiwa Bank Long Term Capital Management

Clients who register for this course will receive a complimentary 4-month subscription to FT.com. The Financial Times is the world's most respected financial newspaper, providing a broad assessment on finance, business and the industrial sector. The move to the electronic version follows an ongoing review of our environmental responsibilities as a global business and as part of the Pearson group. FT.com also has features that are not available in hard copy, such as: Special Reports, Alphaville, editor blogs, education sections and much more! Subscriptions will start within 6-8 weeks of the start of class and are limited to one subscription per client. (Please note: as of May 1, 2011, the electronic subscription replaces the hard-copy 3-month Financial Times subscription.)

Lunch is included for all students taking day classes.

Course Category

Fixed Income Markets II - Day