Fixed Income Analysis - Part 6

Fixed Income Analysis - Part 6


This eCourse consists of two modules.  Most global capital market instruments are some form of tradable debt security (“bond”). The term “fixed income” is often used to refer to the whole bond market since the vast majority of these securities (although not all) have regular, fixed, interest payments (“coupons”). Bond valuation requires methods of calculating and comparing the current values of multiple potential future cash flows.

Module 1 introduces the basic concept of the inverse price/yield relationship and explains how prices and yields are calculated for simple “bullet” bonds.

Module 2 looks at the ratings attached to high yield debt, the key structures used, and the primary and secondary markets for these assets.


On completion of this course, you will be able to:
- Recognize the importance of fixed income analysis, and the significance of the inverse price/yield relationship
- Calculate the yields for bullet bonds
- Identify how coupon frequencies and day count fractions affect the various calculations
- Recognize how high yield debt is graded by the main ratings agencies and recall how the market for high yield assets developed
- Identify the key structures and features of high yield debt
- List the key participants in the primary and second markets for high yield debt


Module 1: Fixed Income Analysis - An Introduction
Topic 1: Bond Price & Yields
Topic 2: Effective & Nominal Rates
Topic 3: Valuation Between Coupon Dates
Topic 4: Shortcomings in Yield as a Return Measurement

Module 2: High Yield Debt
Topic 1: Features of High Yield Debt
Topic 2: High Yield Debt Structures
Topic 3: Markets & Market Players


SFC:2.0, PWMA:2.0
All Member: HK$560
Staff of Corporate Member: HK$560
Non-Member: HK$780