CFA LEVEL 1- Fixed Income
SKU: WX9586C842F
Rs. 4999 Rs. 4999 ( % Off )
Check availability at:
* For Indian Pincodes only

  • CFA LEVEL 1- Fixed Income

Online Course

 

Basic Info           : Fixed Income Level                   : CFA LEVEL 1 Commitment     : 14 hour (7 sessions of 2 hours each) Language           : English Schedule Date:

What Will I Learn

When you are done with this course, you will be able to:

  • Examine the fundamental elements underlying bond returns and risks with a specific focus on interest rate and credit risk.
  • Evaluate credit risk and use credit analysis for risky bonds
  • Determine key measures for assessing a bond’s sensitivity to interest rate risk
  • Measure and analyze credit risk of fixed income securities

Curriculum

Session 1

  • Introduction to Fixed-Income Securities
  •   • Basic features of a fixed income security
  •   • Bond indenture
  •   • Affirmative and negative covenants
  •   • How legal, regulatory and tax considerations affect the issuance and trading of fixed income securities
  •   • How cash flows of fixed income securities are structured

Session 2

  • Fixed-Income Markets- Issuance, Trading & Funding– I
  •   • Global fixed-income markets
  •   • Use of interbank offered rates as reference rates in floating-rate debt
  •   • Mechanism available for issuing bonds in primary markets
  •   • Secondary markets for bonds
  •   • Securities issued by sovereign governments
  •   • Securities issued by non-sovereign governments, quasi government entities and supranational agencies
  •   • Types of debt issued by corporations
  •   • Structured financial instruments
  •   • Repurchase agreements (repos) and the risks associated with them

Session 3

  • Fixed-Income Valuation- I
  •   • Calculate a bond’s price given a market discount rate
  •   • Identify the relationship among a bond’s price, coupon rate, maturity and market discount rate (yield-to-maturity)
  •   • Spot rates and their calculation
  •   • Flat price, accrued interest and the full price of a bond
  •   • Matrix Pricing
  •   • Calculate and interpret yield measures for fixed rate bonds, floating-rate notes and money market instruments
  •   • Spot curve, yield curve on coupon bonds, par curve, and forward curve
  •   • Calculate spot rates from forward rates, forward rates from spot rates and the price of bond using forward rates
  •   • Yield spread measures

Session 4

  • Asset Backed Securities- I
  •   • Benefits of securitization for economies and financial markets
  •   • Typical structure of securitization, including credit tranching and time tranching
  •   • Residential mortgage loans that are typically securitized
  •   • Residential mortgage backed securities and collateralized mortgage obligations, cash flow and risk of each type
  •   • Pre-payment risk of mortgage-backed securities
  •   • Commercial mortgage-backed securities
  •   • Non-mortgage asset- backed securities
  •   • Collateralized debt obligation, including their cash flows and risks

Session 5

  • Understanding Fixed Income Risk and Return- I
  •   • The sources of return from investing in a fixed rate bond
  •   • Macaulay, modified and effective durations
  •   • Uses of key rate duration in measuring the sensitivity of bonds to changes in the shape of the benchmark yield curve
  •   • Bond maturity, coupon and yield level affect its interest rate risk
  •   • Duration and limitation of a portfolio

Session 6

  • Understanding Fixed Income Risk and Return- II
  •   • Calculate the money duration of a bond and price value of a basis point (PVBP)
  •   • Approximate and effective convexity
  •   • Effect of term structure of yield volatility on the interest rate risk of a bond
  •   • How changes in credit spread and liquidity affect yield-to-maturity of a bond
  •   • How duration and convexity can be used to estimate the price effect of the changes

Session 7

  • Fundamentals Of Credit Analysis
  •   • Credit risk and credit-related risks affecting corporate bonds
  •   • Default probability and loss severity as components of credit risks
  •   • Seniority rankings of corporate debt
  •   • The potential violation of the priority of claims in a bankruptcy proceedings
  •   • Risks in relying on ratings from credit rating agencies
  •   • Four Cs of traditional credit analysis
  •   • Financial ratios used in credit analysis
  •   • Factors influencing the level and volatility of yield spreads
  •   • Special consid erations when evaluating the credit of high yield, sovereign and non- sovereign government debt issuers and issues

Includes

Interactive Sessions

Session-specific Assignments(* Condition Apply)

Certificate from BSE Institute Ltd.

Training 5 or more people ?

We provide custom courses and group sessions as well. To know more about our Customized Programs, click here.

Try BSE Business

How It works

Live Online Sessions
Each session is interactive and informative, featuring case studies, quizzes and projects

Interact, Learn and Grow
BSEVarsity.com enables you to master the concepts, interact with expert faculty and other learners and be a part of the community whilst growing.

Get Certified
Get Certified from BSE Institute Ltd. Share your success with world