Prepare for a full day of discussion from some of the Nigeria’s best and brightest.
Details
PROGRAMME OBJECTIVE
To provide participants with the professional skills and knowledge for sound investment decision; develop technical knowledge required in Bonds market Analysis; evaluate various risk management strategies and the VAR techniques etc.
FOR WHOM
This course is developed to equip the Bond Dealers, Business Managers, Heads of Departments and Portfolio Managers as well as other Staff in your institution with the pre-requisite knowledge and skills required to play/succeed in the bond market.
DATE
14-15, September 2017.
VENUE
Moneymart Centre, Plot 1398B, Tiamiyu Savage St., Victoria Island, Lagos
COST
N145,500.00
Outline
Introduction To Fixed Income Securities: Classifying Bonds
What is ‘Fixed’ about Fixed Income?
What is bond?
A brief history
Who issues and invests
Bond characteristics/types
Coupon: fixed, floating, zero
Price/yield relationship
Inflation linked securities
Bond securities with embedded options: callable; puttable; convertible; and exchangeable bonds
Size and Complexity of the Bond Market
Rationale for issuance
Attractions to investors
Concept of Yield
Strategies: Using the Yield Curve
Valuation & Yield Curve Analysis
Calculating a bond’s price on a coupon date
Clean (quoted) vs dirty price
Common accrual conventions
Calculating a bond’s price on a non-coupon date
Interpreting the price: defining yield measures
Yield to maturity as an internal rate of return (IRR)
Yield to call
Running yield
The yield curve and yield curve theories
Econometric forecasting of the yield curve
What is the “benchmark curve”?
What drives credit spreads?
Price Sensitivity: Fixed Income Market Risk Analysis
Price-yield relationship for option-free bonds
Determinants of bond price sensitivity
Measures of bond price sensitivity
Macaulay Duration
Modified Duration
Dollar Duration, PVBP (Present Value of a Basis Point)
Calculation and interpretation of duration
The non-linear properties of duration: time, yield and coupon dependencies
Calculating the duration of a bond portfolio
Convexity
Convexity defined
Calculating convexity for fixed coupon bonds
The implications and ‘value’ of positive & negative convexity
Relationship between convexity and interest rate volatility
Option embedded bonds
Price sensitivity characteristics of callable & puttable bonds
Duration and convexity of callable bonds
Limitations of duration and convexity: assumptions, benefits & shortcomings
Using convexity: bar-ball vs bullet portfolios
Trainers
The Faculty is made up of seasoned professionals and consultants drawn from the practitioners in the financial services industry.
