Fixed Income Securities and Markets

Price: $995   Register now

Recommended that you register at least two weeks in advance.

Course Features

  • Course date:12/05/2019
  • Course Duration: 1 Day
  • Level: Intermediate
  • Prerequisites: Knowledge of CM
  • Method: Live & Virtual
  • Venue: MicroTek
  • Time: 9:00 am – 5:00 pm
  • Dress Code: Business Casual
  • Category:
  • Certificate: Yes
  • CPE Credits: 7
  • Course Code: 211

Fixed Income Securities and Markets

This one-day program covers the characteristics of major fixed income product types, including US Treasury, Corporate, Municipal, Sovereign Debt and Money Markets.  The course content provides the financial context in which issuers deploy these instruments as a means of raising capital, and investors select them for their portfolios as part of asset allocation and investment decision making.  Participants will investigate the process of issuance and distribution in the primary markets for fixed income products, from the auction of U.S. Treasuries to the underwriting of corporate and municipal bond issues.  Money markets such as commercial paper and bankers acceptances are covered as well.  Once issued, the trading of fixed income instruments in the secondary markets, with liquidity sourced from dealers who make markets and generate revenue in the form of spreads, has also witnessed the advent of electronic bond trading platforms.  These platforms have acquired increased importance in the quest for liquidity and best execution. This and other fixed market trends will be examined as well.

Section 1: Overview of the Fixed Income Securities

  • Defining characteristics of fixed income product
  • Issuers decision-making process to use bonds vs stock in raising capital
  • What are the risks to issuers
  • The motivation for investors in selecting fixed income products for a portfolio
  • Risk vs Reward in bond investing
  • Defining the fixed income markets by issuer type
    • US Treasury and Sovereigns
    • Government Agencies
    • Corporations
    • Municipalities
    • Government Agencies
    • Money Markets
    • Investment Banks

Session 2:  Valuation of Cash Flows and Credit Risk

  • Determining the value of the cash flow from principal and interest
  • How the time value of money is calculated
  • Maturities: short, medium, long term
  • Calculating the net present value
  • Characteristics of yield and constructing the yield curve
  • Types of yield
  • How the price is determined and its relationship to yield
  • Percentage of par vs priced to yield
  • Discounted instruments and discount factors
  • Types of coupons: Fixed, variable, floating, auction rate
  • Amortizing fixed income products
  • Incorporation of credit risk and credit spread into prices
  • Ratings assigned to measure credit risk

Session 4: Government Debt Securities and Markets

  • US Treasuries, Agencies
  • Risk-free rates as benchmarks
  • Sovereign Debt Securities
  • Government Bond Auction Process
  • Bills, Bonds, and Notes
  • Primary Dealers in the government bond markets and how trading is conducted
  • Role of Inter-Dealer Brokers
  • Secondary Market Bond Trading
  • Electronic Bond Trading Platforms

Session 5: Money Markets

  • Who are the borrowers and lenders
  • Whither LIBOR
  • SONIA, EONIA, SOFR
  • Types of Money Market instruments
    • T-Bills, Commercial Paper, Bankers Acceptances, CDs
  • Role of the repo market
  • Money market valuations

 

Session 6: Corporate and Municipal Securities and Markets

  • Issuance and underwriting process process
  • Types of issuers
  • Bond ratings
  • Types of corporate and municipal bond structures and features
  • Bond Dealer Operations
  • Investment Managers and Bond Trading
  • Electronic Corporate Bond Trading

Tax implications for issuers and investors and the impact to yield

Instructor

  • Charlotte is a broadly accomplished financial services executive with over 25 years of comprehensive experience in delivering innovative and cost-effective operations and technology training solutions for equities, derivatives and fixed income product lines.  Her successful career as a senior-level manager in Operations at Credit Suisse, Paine Webber and Bankers Trust furnishes the industry expertise that …
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