Fixed Income

Fixed income securities provide a cornerstone asset in the capital markets universe.  Issued by public corporations, private firms, governments and agencies, many types of fixed income instruments are brought to market that contain a wide range of attributes and features.  The breadth of this asset class gives rise to extensive trading and operational infrastructure of both buy-side and sell-side firms.  Finance IQ courses focus on explaining in significant detail the various types of fixed income securities and the markets in which they trade.  In addition, we also feature a five-day suite that provides participants with insights into the competitive landscape and the operational environment for the fixed income trading business.

Overview of Credit Markets
Introduction to Securitization
Fixed Income Trading & Sales Suite
Introduction to Credit Derivatives

Overview of Credit Markets

This one day program provides participants with a deep dive into credit markets and debt-related instruments. The course will detail emerging issues within the Treasury market, trends in corporate issuances, the re-emergence of the MBS market, as well as discuss challenges and opportunities in the money market.  Recent central bank policy will also be reviewed to highlight the impacts of Quantitative Easing on the credit markets.  By combining innovative descriptions with real-world applications, participants will gain a thorough understanding of the critical role credit markets serve in the global economy.

Learning Objectives

Outline/Topics:

  • Classify the major segments of the credit market
  • Identify and describe the main securities in each segment of the credit market
  • Discuss how various Treasury, corporate and asset-backed securities are structured and traded
  • Explain the influence of recent central bank policy over credit markets
  • Describe the risks associated with debt-related instruments
  • Define the money market and the instruments within this market

Duration:  One day

Program Level:  Basic

Prerequisites:  There are no prerequisites

CPE:  7.0 CPE Credits

1 Day Program
  • Introduction & Bond Basics
  • Treasury Market
  • Central Bank Policy
  • Municipal Bonds
  • Corporate Bonds
  • Asset-backed Securities
  • Money Markets
  • Investing in Fixed Income
  • Fixed Income Risks
  • Summary and Questions

For a detailed outline and additional information on this course or to find out about our other courses, contact us at (646) 244-5190 or [email protected]!

Introduction to Securitization

Securitization epitomizes a primary purpose of Wall Street which is to bring together the sources and users of capital.  In essence, securitization provides a means by which issuers can raise funds and investors can gain access to a cash flow stream.  This two-day course provides participants with a detailed description of how the securitization process works, as well as, the various motivations for their use.  The products involved in the securitization process, such as mortgage products, will be explained in detail and will be supported by real world exercises and case studies.

Learning Objectives

Outline/Topics:

  • Explain the key features of a securitization
  • Describe the motivations for issuing securitized products
  • Describe the purpose of investing in securitized products
  • Describe how a Special Purpose Vehicle (SPV) is created
  • Evaluate the benefits and risks to the process of securitization
  • Identify and critique past problems with securitization
  • Compare and evaluate different types of securitizations
  • Discuss current market conditions various securitized products
Day 1
  • The securitization process
  • The economics of securitization
  • Products – Mortgage Backed Securities
    • Agency versus non-agency
    • Passthroughs
    • Risks in MBS investing
Day 2
  • Traditional versus exotic asset backed securities
  • Current market conditions
  • Collateralization
    • CDOs
    • SPVs
    • CMOs
    • CLOs
  • Summary and Questions

Duration:  Two days

Program Level:  Basic

Prerequisites:  There are no prerequisites

CPE:  14.0 CPE Credits

For a detailed outline and additional information on this course or to find out about our other courses, contact us at (646) 244-5190 or [email protected]!

Fixed Income Trading & Sales Suite

This five day program, targeting entry-level and intermediate-level staff, provides a comprehensive review of fixed income products bought and sold through an institutional sales desk.  The course will also afford participants a detailed insight into the markets in which fixed income products trade and review the regulations that influence both products and markets.

Emphasis will be placed on learning the latest industry developments, risk management techniques, the competitive landscape and the operational environment for the fixed income trading business.

Learning Objectives

Outline/Topics:

  • Define and describe the fixed income securities traded and sold on an institutional desk
  • Define and correctly employ terminology used the various fixed income markets
  • Explain how various fixed income markets function and how different products are traded
  • Identify and describe the mandates and motivations of institutional customers
  • Identify opportunities to cross-sell and upsell
  • Identify best practices for an institutional fixed income business
  • Discuss operational and compliance responsibilities on a fixed income desk
  • Review major U.S. and international regulations that impact fixed income products and markets

Duration:  Five days

Program Level:  Basic

Prerequisites:  There are no prerequisites

CPE:  35.0 CPE Credits

Day 1
  • Fixed Income Business
    • Products
    • Terminology
    • Markets
  • Sales desk primary functions
  • Operational infrastructure
  • Sovereign Debt & Benchmarks
  • LIBOR
Day 2
  • Bank debt
  • Corporate bonds
  • Municipals
  • Securitization
    • Process and marketplace
    • Economics of securitization
  • Mortgage Backed Securities
    • Agency versus non-agency
    • Passthroughs
    • Risks in MBS investing
Day 3
  • Asset backed securities
    • Traditional versus exotic assets
  • Money markets
    • Security types
    • Fund and other products
  • Fixed income derivatives (part I)
    • Interest rate swaps
    • Credit default swaps
Day 4
  • Fixed income derivatives (part II)
    • Exchange Traded Derivatives
    • Identifying and helping manage client risk exposures
    • Futures
    • Options
  • Issues in regulation
    • Central clearing
    • Dodd Frank Title VII
  • Risk Management
  • Defining risk
  • Impacts
  • Types
  • Policies and procedures
  • Controls
Day 5
  • Fixed income derivatives (part II)
  • Risk Management
    • Market risk
    • Statistical measures
    • VaR
    • Expected shortfall
  • Credit risk
    • PD and LGD
    • Regulatory approaches to managing credit
    • Market approaches
    • Non-market mitigants
  • Liquidity risk
  • Regulation
    • Basel
    • Dodd Frank
    • MiFID
    • Impact on liquidity, leverage and capital
    • Stress testing
    • Scenario testing

 

  • Summary and Questions

For a detailed outline and additional information on this course or to find out about our other courses, contact us at (646) 244-5190 or [email protected]!

Introduction to Credit Derivatives

The evolution and establishment of credit derivatives in the last twenty years has had a significant impact on global markets and economies across the world.   This course will provide participants with an in-depth examination of credit derivatives and their various structures and uses, as well as, an analysis of how they came to be a major component of the financial crisis. Through the use of exercises and case studies, participants will have the opportunity to understand the roles, uses, pricing and valuation in their respective markets today.

Learning Objectives

Outline/Topics:

  • Define a credit default swap and understand what their use is
  • Compare the different types of credit derivatives
  • Explain how a credit default swap is priced
  • Evaluate the current market for credit derivatives and the effect that regulation has had on this market
  • Identify the players in this market and their motivations and goals
  • Compare and contrast credit default swaps to other swaps as well and insurance

Duration:  One day

Program Level:  Basic

Prerequisites:  There are no prerequisites

CPE:  7.0 CPE Credits

1 Day Program
  • Types of Credit Derivatives
    • Credit-linked notes
    • Asset backed swaps
  • Credit default swap valuation
    • Source of price
    • Is this a swap?
  • CDS Market
    • Change in market facts and figures
    • Index linked products
    • Central clearing
  • CDS Uses
    • Who uses CDS
    • What are some uses
    • Funding cost advantage
    • Bond hedge example
  • Counterparty credit risk

For a detailed outline and additional information on this course or to find out about our other courses, contact us at (646) 244-5190 or [email protected]!