Summary

Learning Outcomes

· Participant will be able to understand the terms in Fixed Income markets with a deeper grasp of the instruments, issuances, yield computations, etc., with numerical exercises wherever needed

· Understand bond price-yield relationship, duration, and price sensitivity measures

· Understand interest rate derivatives and its role in Fixed Income markets

· Understand macro-economic impact in bond markets, impact of monetary policy and interest rate movements in yield curve shape     

Target Audience

· Beginners/mid-level in Fixed income market space looking for intense conceptual learning

· On the job learners lookingfor deeper learnings of basics, concepts, and macro analysis relevant to Fixed Income

· Risk Manager whose role overlaps with fixed income market portfolios

· Wealth Managers and sales staff of brokerages who are required to be trained to interact with clients on fixed income products

Course Content

Day 1

Session 1

· Introduction to Fixed Income

· Understanding market forces and linkages to other asset classes

· Key terms and concepts in Fixed Income

Session 2

· Back to Basics – Time value of money, Interest computation – simple, compounding (discreet/continuous), Discounting factor, Present value factor, Present value annuity factor

· Premium vs discount, front end/rear end yield, day count conventions, Floating vs fixed rate

· Numerical exercises on above for conceptual clarity

Session 3

· Bond Mathematics – hand-on deeper understanding, Modified and Macaulay duration

· Time path of bond, relationship among yield, coupon, and price

· Price quotation and computation of clean/dirty price

Session 4

· Yield Curve – spot, forward

· Construction of yield curve and Zero-coupon curve

· Yield curve shifts - causes, inferences, anticipation, and reaction

Day 2

Session 5

· Understanding various instruments in Fixed Income markets

· Corporate Bond markets in India

· Credit risk - concepts and measures

Session 6

· Interest Rate derivatives and it’s role in Fixed income markets

· OIS, MIOIS, Swaption - discussions with numerical workings

· Derivatives in Fixed Income markets – its uses and impact

Session 7

· Macro-economic analysis for interest rate views

· Flexible Inflation Targeting framework and Monetary policy - how it works

· Monetary Policy tools and its uses

Session 8

· Global linkages in Financial markets, including fixed income

· Monetary policy and macro-economic direction in major markets, divergences and its impact

· Inference from shape of yield curve and Interest rate swap curve of major markets for forecasting

Training dates - November 21-22, 2024

Training fees - ₹ 25,000 + applicable taxes