The 4-day intensive workshop on "Bond Analysis" has been designed in order to provide an understanding of the complexities of the fixed income market. It delves into the details of the bond markets, with an understanding of concepts like duration, convexity interest rate term structures etc. The workshop reinforces the ways and methodologies of fundamentally analyzing fixed income securities markets, concepts of bond pricing, different yield measures, yield curve analysis and their application. It also explains how to assess relative value, risk and return and the key factors in investment trading strategies. It also provides an overview of fixed-income derivatives markets, various instruments, their characteristics and application, hedging and risk management tools thus enabling the participants to trade in the markets in an efficient and intelligent manner.
Introduction to Fixed Income Security
Introduction to Fixed Income Securities and Instruments.
Characteristics of Fixed Income Securities.
Differences between Money Market and Debt Market
Factors affecting the Bond Markets
Interplay of Foreign and Domestic Bond Markets
Participants of Fixed Income Securities.
Regulatory Framework for Fixed Income Securities.
Trading & Settlement Mechanism in Indian Bond Market
Accounting Background of the treatment of Fixed Income Bonds in the Indian market
Interest Rate Determination
What drives the interest rate in the market?
Overview of Term Structure of Interest Rates
What kind of shape does a yield curve take?
How does it evolve over time?
Classical theories of Term Structure
Pure Expectations theory
Pure Risk Premium Theory
Market Segmentation Theory
Biased Expectations Theory
An Integrated Approach.
Fixed Income Math
Time Value of Money
Duration and Modified Duration
Pull to Par Effect
Yield Curve Dynamics .
Types of Yield Curves
Yield to Maturity/ Call/ Put/ Worst/ etc.
Constructing a Yield Curve
Importance of Zero and its derivation from market prices.
Constructing a zero coupon curve from a par curve : Stripping a Bond
Zero Coupon Bonds
Forward Starting Bonds
Floating Rate Instruments and their valuation nuances.
Floating Rate Benchmarks
Pricing Floating Rate Bonds through accrual & forward methods
Inflation Indexed Bonds
Risks in the Fixed Income Markets
Understanding and quantifying risks in Fixed Income securities.
Yield Curve Risk
Spread Risk (To be emphasized with Bond Theorem and its understanding)
Introduction to Fixed Income Derivatives
Interest Rate Swaps
Forward Rate Agreements
Interest Rate Futures
Fixed Income Risk Management
Duration based Risk Management
Swaps- Simple Plain Swaps and others like Accrediting, Amortizing and Roller Coaster Swaps, Basis Swap, CMT swaps, Total Return Swaps, Credit Default Swaps, etc.
Fixed Income Investment Strategies
Passive Fixed Income Portfolio Management
Active Fixed Income Portfolio Management
Bond Portfolio Management Strategies
Buy and Hold
Bullets and Barbells
Using swaps and Forward Rate Agreements
Carry & Roll Down strategy
Relative Value Arbitrage
Spread Trading: Intra curve & inter curve
HPY targeting strategies
Rich - Cheap Analysis of a yield curve
Interest Rate hike/ cuts market perception by using swaps
Innovative Debt Market Structures & its Hedging
Introduction to the Indian & International Debt Markets
Various Nuances of Indian Debt Market Valuations like accounting in HTM, AFS & HFT along with its hedges
Valuing credit bonds
Valuation issues for a floating rate bond
Key professionals/executives involved in the debt market operations at Banks, Stock Brokers, Corporates, Mutual Funds, Financial Institutions, Foreign Institutional Investors, Traders, Dealers, Consultants and other Professionals.
DURATION & TIMINGS
9.30 am to 5.00 pm
Rs. 18000 + 10.30% (Service Tax +Education Cess) inclusive of workshop fee, study material, computer facility to each participant for hands-on practice, snacks and lunch.