The objective of the workshop is to provide participants a comprehensive overview of different fixed income securities, the characteristics of bonds, bond market conventions and bond valuations.
We will then explain methods for measuring interest-rate risk. We will present and explain concepts such as duration and convexity, and we will also demonstrate how interest-rate risk can be assessed at the portfolio level. After a brief review of yield curve analysis, we will explain and demonstrate how different views about the level and shape of the yield curve can be exploited.
Finally, we will explain the role of futures and swaps in trading and hedging. Practical tips for hedging bond portfolios against interest-rate risk will also be given.
Course Brochure and Infographics
The workshop comprises a combination of lectures, discussions, case studies and practical workshops. It is intended for participants without practical experience on debt capital markets. Traders and portfolios managers who are already engaged in trading with bonds will learn several new techniques for hedging their portfolios during the second part of the workshop. In addition to the theoretical basics, participants will find interesting solutions for their day-to-day work. Individual topics will quickly and intensely move from the basics of bonds to the operational aspects of portfolio hedging. Equal attention will be given to theoretical concepts and practical applications.
Participants are requested to bring a financial calculator (HP 17B or similar) for calculations in practical examples and exercises.
– Introduction to bonds
– What is a bond?
– Who are the issuers and who are investors in bonds?
– Characteristics of bonds
– Classification of bonds
– Issue and settlement of bonds
– Bond trading
– Fundamentals of investing
– Bond pricing
– Conventional yield measures
– Valuing a bond between coupon payments
– Calculating the dirty price and accrued interest
– Yield curves
– Measuring interest-rate risk
– Introduction to fixed income derivatives
– Fundamentals of hedging bond portfolios
Who should attend
– bond traders
– portfolio managers
– bank & corporate treasury staff
– treasury sales
– treasury dealers & traders
– auditors and product control
– risk management, accounting and ALM
– finance staff at corporations
– back office personnel
Group booking discounts
2 delegates — 440 EUR per delegate
3 or more delegates — 390 EUR per delegate