|Course Code: 603
|Duration: 1 day
|CPE Credits: 7
|Prerequisite: No Prerequisite Required.
This one-day seminar provides an extensive overview of all major types of fixed income securities. Presentation will highlight: key characteristics and features by security type; relative risks and sources of expected return for each; organization of primary and secondary markets.
The program begins with a discussion of fixed income fundamentals, the elements and concepts common to most types of fixed income instruments. Subsequently the program turns to a detailed investigation of each major segment of the fixed income markets and the variety of securities traded. The presentation will cover governments, agencies, corporates, municipals and asset backed (including mortgage backed) securities.
This seminar would be useful for anyone whose duties entail contact with fixed income securities. This program would be especially helpful to those working in areas supporting fixed income trading, sales or investment management such as clearance and settlement, compliance, financial control, information technology or portfolio administration.
Topics for Discussion Include:
- Fixed Income Terms and Definitions
- Characteristics of Fixed Income Securities
- Interest Rate
- Capital Gains and Losses
- Interest and Reinvestment Income
Bond Math Basics
- Interest Rates, Yields and Rates of Return
- Fixed Income Pricing Conventions
- Conventional Yield Measures
- Yield to Maturity Reconsidered
- Yield Curves
Types of Fixed Income Securities
- Government Securities
- Treasury Bills
- Money Market Instruments
- Agency Securities
- Mortgage Backed Securities
- Other Types of Asset Backed Securities: Credit Card, Auto Loan, etc.
- Municipal Securities - General Obligation and Revenue Bonds
- Corporate Bonds and Preferred Stocks
- High Yield Securities
After completing this program participants should be able to:
- Recognize and explain the fundamental features of fixed income securities as well as the related terminology and basic market structures
- Identify and define the types of risk and sources of return to fixed income investors
- Distinguish between and among the primary types of fixed income securities across the sectors of the fixed income market
- Identify and describe the features and investment characteristics of US treasury securities: t-bills, t-notes and t-bonds
- Explain corporate bond contract features including: trust indentures, call and put provisions, sinking funds, senior versus subordinated debt, secured versus unsecured bonds and conversion options
- Describe the main elements of asset securitization, the elemental features of structured securities and the primary characteristics of mortgage backed securities (MBS), asset backed securities (ABS) and collateralized debt obligations (CDOs)