Training for the Future


Understanding the Mechanics and Terminology of Bonds

Course Code: UMBT

Dates: 21 Nov - 25 Nov | 13 Mar - 17 Mar | 29 May - 2 Jun | 14 Aug - 18 Aug | 20 Nov - 24 Nov

Price: £2750 Plus VAT

Duration: 1 Week /s

Course Objectives

A full understanding of the mechanics and terminology of bonds. A full explanation of how and why bonds are issued. A full explanation of how and why bonds are purchased. Identification of the main risks associated with bond markets

Who Should Attend?

Capital market regulators, stockbrokers, institutional Government officials


Prerequisite Courses

None


Course Overview

  • Bond Markets Terminology & Structures:

  • The cashflow structure of bonds, Interest calculations and day count

  • Conventions:

  • Fixed coupon securities, FRNs, Zero coupons, Collateralized issues,
    Public offerings, Medium term notes, Private placements.

  • The Issuance Process:

  • Bond market conditions, Why issuers seek long term funding, Investor’s &
    Issuer’s objectives, Selecting bond structure, Issue size, Role of the
    manager, Fees, Maturity, Timing, How swaps are used with new issues, All in
    price on a fixed and floating basis.

  • Why investors buy bonds:

  • Different types of investor, Different risk/reward needs, Credit, interest
    rate, foreign exchange risks, How investors identify value, Relative
    value/spreads, Liquidity.

  • Combining swaps & bonds:

  • Generic asset swap structures, Par/par structures, High coupon bonds, Low
    coupon bonds, Up-front payments, Accrued interest

  • Bonds and risk:

  • Introduction to, Credit risk, Interest rate risk, FX risk, Problems with
    liquidity & valuation.

  • Non-vanilla bonds:

  • Introduction to how different risk profiles can be added to bonds using
    swaps



    Course Materials

    Notes, hand outs and exercise materials
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