Fixed Income Analysis - Part 3

Fixed Income Analysis - Part 3

Overview

This eCourse consists of two modules. Module 1 examines what this actually means, and the reasons for such a differential. The factors causing this differential do not stay constant over time, so this module investigates how time affects these factors. Finally, it explains why in most cases only one bond from the many deliverable bonds into a bond futures contract is ever chosen to be delivered.

Module 2 describes the motivations to invest in a zero-coupon bond. The module will also provide an overview of 'stripping', the process of separating out each coupon payment and the principal payment from a standard coupon-paying bond. Finally, this module will describe how to derive a zero-coupon yield curve from par-coupon rates and describe the risks associated with investing in zero-coupon bonds.

Objective

On completion of this course, you will be able to:
- Identify basis trading strategies for portfolio managers
- Execute basis trades
- Identify the basic features and characteristics of zero-coupon bonds, including strips
- Derive a zero-coupon yield curve from the par-coupon rates in the market
- Recognize the risks associated with investing in zero-coupon securities

Content

Module 1: Basis Trading
Topic 1: Strategies for Portfolio Managers
Topic 2: Executing the Trade

Module 2: Zero-Coupon Bonds
Topic 1: Overview of Zero-Coupon Bonds
Topic 2: Zero-Coupon Yield Curves
Topic 3: Risks of Zero-Coupon Bonds

Details

Code
TEPFD17001101
Venue
ePlatform
Language
English
Level
Intermediate
Hours
SFC:2.0, PWMA:2.0
Fees
All Member: HK$560
Non-Member: HK$780
Staff of Corporate Member: HK$560