Fixed Income - Part 7

Fixed Income - Part 7

Overview

This eCourse consists of two modules. Module 1 extends the analysis of risks facing fixed income investors beyond merely interest rate risk, and into the sphere of credit risk. It describes the credit characteristics of differing forms of debt issuance, market evaluation of credit risk, and the roles of rating agencies in the credit universe.

Module 2 will provide an overview of the basic structure and features of floating rate notes. It will also describe the various uses and applications of FRNs, variations of the basic FRN structure, and price/yield calculations.

Objective

On completion of this course, you will be able to:

- Describe how the credit exposure on some bonds affects their return characteristics relative to 'riskless' debt 
- Explain how credit seniority and simple covenants affect the credit risk of an issue 
- Explain how market prices give an indication of credit evaluation 
- Outline the roles, methodologies, and challenges faced by the major rating agencies 
- Describe how credit has evolved into a distinct asset class 
- Outline the basic structure and features of FRNs 
- Analyze various aspects of FRNs, including their pricing and yield calculations

Content

Module 1: Fixed Income - Credit Risk
Topic 1: Credit Exposure
Topic 2: Ranking & Risk 
Topic 3: Credit Spreads and Evaluation 
Topic 4: Rating Agencies 
Topic 5: Credit as an Asset Class

Module 2: Floating Rate Notes (FRNs)
Topic 1: Features of FRN 
Topic 2: Price/ Yield Considerations

Details

Code
TEPFD17000701
Venue
ePlatform
Language
English
Level
Intermediate
Hours
SFC:2.5, PWMA:2.5
Fees
All Member: HK$700
Non-Member: HK$975
Staff of Corporate Member: HK$700