FIXED INCOME
- Next session: 15 November 2017
- Teachers: Thierry CHARPENTIER and Patrick SEASSAU – See their bios
- Language: English
- Debt market, interest rates, bonds, …Detailed syllabus
- Certificate of completion
- Price: 770 USD (students and job seekers: 605 USD) – See prices
PRESENTATION
The bond market has a central place in financial markets. Most easily understood as the debt market, it is a place where government bodies and companies can finance their activities.
The financial crisis of 2008 and aftermath has demonstrated the importance of the markets and the inter-connectedness they play in the globalized world.
Given its current dynamics it is essential to have an understanding of the fixed income markets, not just for those who work in finance, but for anyone looking to better understand global economics.
The Fixed Income MOOC aims to give you an comprehensive understanding of bonds: what are their uses? How are prices determined? What are the risks? The bond market is also the foundation of the interest rates market, so we will dive into the interest rates markets and key considerations.
We will also look at derivatives: futures and swaps, which are intrinsically linked to bond markets and we will study how they are valued and used to manage risk.
FOR WHOM?
Develop a strong understanding of the Fixed Income world is essential, for all finance professionals as well as for those who want to understand our global economy. This Executive MOOC is suited for junior traders and portfolio managers, origination and syndication junior analysts, sales, as well as for back and middle office departments, IT, legal, and tax departments, internal control, audit, inspection teams, senior bankers and coverage, ALM and corporate treasurers, and for finance teams in the public sector. Thanks to this Executive MOOC, you will understand discounting, money markets, bond markets, as well as derivatives markets (futures and swaps) through several practical case studies.
SYLLABUS
PROGRAMME:
> Monetary policy of Central Banks
> Unsecured loans
> Secured loans
> Day count factors
> Term structure of interest rates
> FRA and STIR
> Origination
> Price quotations and accrued interest
> Credit spreads
> Credit Default Swaps
> Other types of bonds
> Pricing of a fixed rate bond
> Yield to maturity
> Zero-coupon rates
> Bond price analysis
> Duration and other sensitivities
> Strategies
> Pricing principles for bond futures
> Characteristics and use of interest rate swaps
> Discount factors and forward rates
> Pricing principles for interest rate swaps
> Building an asset swap
> I-spread and Z-spread
> Correction by peers under supervision of the lecturer
- Bond futures valuation principles
- Conversion factor
- Cheapest to Deliver
- Hedge ratio
Pratical workshop
- Hedging a portfolio with futures
- Market simulation with the First Trading Room®: hedging an interest rate position with futures
Swap pricing
- Swap valuation principles
- Computing discount factors
- Sensitivities by buckets
Pratical workshop
- Building a simple swap pricer on Excel™
- Trading swaps with the the First Trading Room®
Bond management strategies
- Translation
- Roll over
- Flatenning / steepening
- Curve hedging
- Sensitivity and convexity hedging
Pratical workshop
- Bond management with the First Trading Room®: butterfly, steepening, flatenning, hedging bond positions with swaps and futures
THIERRY CHARPENTIER
INSTRUCTIONAL CONTENT AND QUALITY DIRECTOR
A graduate from Ecole Centrale (Paris), Thierry was a trader for 10 years working at firms such as BNP Paribas and Credit Agricole Corporate & Investment Bank. Today, he is in charge of the FIRST FINANCE trainers’ team and supervises the associate trainers.
Thierry produces FIRST FINANCE certificates, e-learning solutions and MOOC.
PATRICK SEASSAU
CONSULTANT IN MANAGEMENT, FINANCE AND INSTRUCTIONAL DESIGN
Patrick Seassau spent 15 years in Investment Banking in London before moving 10 years ago into Learning and Development for Executives, more particularly in the world of finance. As a banker, Patrick traded Interest Rate Derivatives (swaps, options) on a proprietary basis.
In Learning and Development, he set up several programmes for the top-executives of major institutions and is strongly involved in the design of distance-learning programmes (MOOC).
Patrick is a graduate from HEC Paris (France).
FOR MORE INFORMATION, PLEASE CONTACT :
Singapore : Laurence Demarchi, laurence.demarchi@first-finance.asia
New York: Adam Ring, adam.ring@first-finance.fr