Debt Instruments And Markets
Course Category: BANKING OPERATION COURSES
Course Fee: $4,500
WORKSHOP OVERVIEWThis is a keystone workshop for debt market professionals. It offers an intensive review of the global market for bonds and money market instruments, with a focus on fixed-income asset pricing and risk analysis, including interest-rate risks and credit-related risks. It includes material and techniques essential for dealers and brokers, for individuals involved in debt underwriting and distribution, and for managers of fixed-income portfolios.
TARGET PARTICIPANTS
The seminar is of relevance to both potential originators and investors in debt: money market professionals, commercial lenders and investment bankers, securities analysts; investment officers and fund managers; asset managers and other individuals whose professional future may be enhanced by an understanding of debt instruments and techniques.
WORKSHOP OBJECTIVES
At the end of this course participants will be able to:
- Explain the basics of fixed income instruments
- Identify the different classes of bond investors and their main goals and constraints
- Compare the risk classes of different fixed-income investments and floating-rate notes
- Understand duration, immunization, and related measures of interest rate risk
- Understand bond ratings and related measures of credit risk
- Grasp the fundamentals of debt instruments, such as government bonds, international corporate bonds, high-yield bonds and asset-backed securities
- Explain the principles of option features in bonds
WORKSHOP CONTENT
Debt Instruments: The Global Market
- Money Market Instruments
- Treasury bills
- Fed funds
- Commercial paper
- The international interbank market
- Assignment: Find and interpret rates in the international money market
Government Bonds
- Comparison of government bond markets
- Rating government bonds
- Bond interest rates: discount rates, coupon and yields
- The yield curve
- Bond pricing methods
- Strips and synthetic treasuries
- Exercise: Identifying mispriced government bonds using the spot curve
Measuring Rate Risk in a Bond Portfolio
- Measuring bond price risk: Maturity, average life, and duration
- Duration and convexity of bonds
- Duration of portfolios
- Managing and matching fixed liabilities in pension funds and insurance companies
- Hands-on exercise: Immunizing a portfolio
- Measuring the gap: Value at Risk
- Closing the gap: portfolio restructuring
Managing Risk in a Bond Portfolio: Tools and Techniques
- Closing the gap: derivatives
- Futures, forwards and swaps
- Delta, gamma and the use of options
- Dynamic hedging
- Exercise: Managing the interest-rate risk of a mortgage portfolio funded with a straight bond.
Corporate Bonds, Domestic and International
- The global corporate bond market
- Credit risk and ratings
- High-yield debt
- Corporate bond spreads, pricing and issuance
- Hedging credit risk with credit default swaps
- Exercise: Review deals in the international bond market
Asset-Backed Securities
- Structure of ABS
- Process of securitization
- Credit enhancement and ratings
- Collateralized Debt Obligations
- Case study: Creating an ABS from a bank’s loan portfolio
Bonds with Options
- Call features and pricing
- Callable corporate bonds: special features
- Mortgage-backed securities
- Comparison of yields
- Determinants of option value
- Option-adjusted spreads
Dates:
09 Dec, 2019 - 13 Dec, 2019 | 06 Apr, 2020 - 10 Apr, 2020 | 13 Jul, 2020 - 17 Jul, 2020 | 20 Sep, 2020 - 25 Sep, 2020
Venues:
USA | London | Dubai | South Africa | Ghana
