KPME Fixed Income Analysis and Valuation
Fixed Income Analysis and Valuation
Course Start Date: 17th September 2023
Training Duration: 4 Days
Practical application through exercises:
- Excel Exercises
Learning Outcomes
Familiarize participants with the structure and functioning of the international primary debt markets to determine the most appropriate organization of financing for a particular borrower.
Getting to know the securities secured by mortgage and the securities secured by Euro assets and bonds.
Doing bond-related calculations for bond pricing and yield to maturity.
Bond sensitivity analysis using bond duration to determine bond yield curves.
Course Outlines
- Role and scale of Debt Capital Market
- Bond Issues in the region
- Types of Bond Issuers
- Structure of different types of Bonds
- Fundamentals of Credit Analysis
- Credit Rating
- Measuring credit risk using the four Cs of Credit Analysis
- Credit Enhancement
- Credit Migration
- Approaches to credit strategies
- Syndications & Syndications process
- Pricing feedback/Market analysis
- Strategizing optimum Syndication
- Due diligence, approval & client negotiation
- Securitization & structures of securitization
- Mortgage-backed securities
- Collateralized Debt Obligations
- Valuation process for fixed income security
- Interest rate Dynamics – relation between bond price and interest rates
- Valuing a bond with different coupon frequencies
- Exercise: Valuing a recently issued option free bond
- Yield measures for fixed coupon bonds, floating rate bonds and money market securities
- Exercise: Calculating YTM on a live bond and analyze
- Calculating and analyzing yield spread measures – G spread, Z spread and OAS
- Exercise: Analyzing comparative attractiveness of comparable bonds using yield spread measures
- Role of Fixed Income in a portfolio
- Fixed Income Liquidity
- Fixed Income investing mandates
- Managing interest rate risks
- Modelling expected return