Basics of Financial Markets. Fixed Income and Fixed Income Derivatives.
Opis
This training offers an in-depth exploration of the fixed-income market and its derivatives, providing essential theoretical knowledge and practical skills for professionals engaged in financial projects. It is designed to equip participants with a comprehensive understanding of fixed-income instruments, market principles, and the various factors influencing bond pricing and risk management.
The training covers the following key topics:
- Fixed Income Market Overview & Principles: Participants will gain insights into the structure and functioning of the fixed income market, including the roles of different market participants and the principles governing fixed income securities.
- Time Value of Money: Essential concepts such as future value, present value, and discounting will be discussed, providing a foundation for understanding the valuation of fixed-income instruments.
- Bonds/FRNs and Yield Curves: The course will delve into the characteristics of bonds and floating rate notes (FRNs), as well as the construction and interpretation of yield curves.
- Cashflows, Pricing of Bonds: Participants will learn how to analyze bond cashflows and determine bond pricing using various models and techniques.
- Sensitivities: Duration, Dollar Duration, Dollar Convexity: The training will cover measures of bond price sensitivity to interest rate changes, including duration, dollar duration, and dollar convexity.
- Taylor Approximation of Bond Price Changes: The course will introduce the Taylor series approximation for estimating bond price changes based on sensitivity measures.
By the end of this training, participants will:
- Develop a solid understanding of the fixed-income market and its underlying principles.
- Master the concepts of the time value of money and its application in fixed-income valuation.
- Acquire practical knowledge of the characteristics and pricing of bonds and FRNs, as well as the interpretation of yield curves.
- Learn to calculate and apply sensitivity measures (duration, dollar duration) to manage interest rate risk.
- Gain the ability to use Taylor approximation to predict bond price changes based on sensitivity analysis.
Case studies will be integrated into the training to provide real-world examples and enhance practical understanding. Participants will also be required to answer test questions throughout the course to assess their comprehension and application of the material.
This course is ideal for finance professionals, analysts, and project managers who seek to deepen their knowledge of the fixed-income market and its derivatives and effectively apply this knowledge in their professional activities.
wydawany jest certyfikat
Cele
After the training, the attendees will be able to:
- Know concepts and principles of the fixed-income market.
- Understand the principle of money value calculation.
- Understand the principle of bond value calculation.
- Understand such concepts as yield curve, sensitivity, and cash flow.
Grupa docelowa
Testers, system and business analysts, architects, developers, and project managers.
Warunki wstępne
Completed introductory training in financial markets and derivatives training or possess equivalent knowledge
Plan działania
- Fixed Income Market (0.5 hours)
- Bond Issuance (1 hour)
- Bond Prices (1.5 hours)
- Types of Bonds (1 hour)
- Bond’s Sensitivities (1 hour)
- Yield Curves (0.5 hour)
- Bond Derivatives (0.5 hours)
Total: 6 hours