1.Overview of fixed-income security
• Basic features of fixed-income security (the issuer, maturity, par value, coupon rate),
• legal, regulatory, and tax considerations of contractual agreements,
• structure of bonds scheduled cash flow, coupon payment structures,
• bonds with embedded options (callable, puttable, convertible bonds).
2. Fixed-income markets
• Overview of global fixed-income markets (classification, fixed-income indexes),
• primary and secondary bond markets (bond issue offerings, exchange and OTC markets),
• bonds by different types of issuers (sovereign, non-sovereign, corporate bonds),
• types of structured products and money market instruments.
3. Fixed-income valuation
• Bond prices and the time value of money (calculation of a bond’s price),
• conventions for quotes and calculations (flat price, accrued interest, full price)
• relationships between the bond price and bond characteristics,
• yield measures (current yield, yield to maturity).
4. Asset-backed securities
• Basic concept of asset securitization (benefits, process, parties involved),
• mortgage pass-through securities, collateralized mortgage obligations (CMO),
• non-agency RMBS, non-mortgage asset-backed securities,
• covered bonds and their comparison with other asset-backed securities.
5. Fixed-income risk and return
• Sources of return and calculation of bond yields,
• The effect of bond’s maturity, coupon and yield level on interest rate risk,
• measures of interest rate risk (duration, convexity),
• credit and liquidity risk.
6. Principles of credit analysis
• Essentials of credit risk (credit-related risks, default probability),
• Rating agencies and credit rating (their role in the debt markets),
• purpose of credit analysis (the basic framework of credit analysis),
• credit risk versus return.
• Basic features of fixed-income security (the issuer, maturity, par value, coupon rate),
• legal, regulatory, and tax considerations of contractual agreements,
• structure of bonds scheduled cash flow, coupon payment structures,
• bonds with embedded options (callable, puttable, convertible bonds).
2. Fixed-income markets
• Overview of global fixed-income markets (classification, fixed-income indexes),
• primary and secondary bond markets (bond issue offerings, exchange and OTC markets),
• bonds by different types of issuers (sovereign, non-sovereign, corporate bonds),
• types of structured products and money market instruments.
3. Fixed-income valuation
• Bond prices and the time value of money (calculation of a bond’s price),
• conventions for quotes and calculations (flat price, accrued interest, full price)
• relationships between the bond price and bond characteristics,
• yield measures (current yield, yield to maturity).
4. Asset-backed securities
• Basic concept of asset securitization (benefits, process, parties involved),
• mortgage pass-through securities, collateralized mortgage obligations (CMO),
• non-agency RMBS, non-mortgage asset-backed securities,
• covered bonds and their comparison with other asset-backed securities.
5. Fixed-income risk and return
• Sources of return and calculation of bond yields,
• The effect of bond’s maturity, coupon and yield level on interest rate risk,
• measures of interest rate risk (duration, convexity),
• credit and liquidity risk.
6. Principles of credit analysis
• Essentials of credit risk (credit-related risks, default probability),
• Rating agencies and credit rating (their role in the debt markets),
• purpose of credit analysis (the basic framework of credit analysis),
• credit risk versus return.