Understanding the Bond Markets

9-10, March 2020 and 18-19, June 2020. Lagos


Strap yourself in for ideas

Prepare for a full day of discussion from some of the Nigeria’s best and brightest.

  • Details

    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.

    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.

    9-10, March 2020 and 18-19, June 2020.

    Moneymart Centre, Plot 1398B, Tiamiyu Savage St., Victoria Island, Lagos


  • 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 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.

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ideas & discussion.

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