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Securities Operations Forum Training Introduction to Fixed Income Products

Post on: 16 Июнь, 2015 No Comment

Prerequisite: No Prerequisite Required.

This one-day seminar provides an extensive overview of all major types of fixed income securities. Presentation will highlight: key characteristics and features by security type; relative risks and sources of expected return for each; organization of primary and secondary markets.

The program begins with a discussion of fixed income fundamentals, the elements and concepts common to most types of fixed income instruments. Subsequently the program turns to a detailed investigation of each major segment of the fixed income markets and the variety of securities traded. The presentation will cover governments, agencies, corporates, municipals and asset backed (including mortgage backed) securities.

This seminar would be useful for anyone whose duties entail contact with fixed income securities. This program would be especially helpful to those working in areas supporting fixed income trading, sales or investment management such as clearance and settlement, compliance, financial control, information technology or portfolio administration.

Topics for Discussion Include:

Bond Fundamentals

Fixed Income Terms and Definitions
Characteristics of Fixed Income Securities
Risks

Default
Interest Rate

Inflation

Liquidity

Return

Capital Gains and Losses

Interest and Reinvestment Income

Bond Math Basics

Interest Rates, Yields and Rates of Return
Fixed Income Pricing Conventions
Conventional Yield Measures
Yield to Maturity Reconsidered
Yield Curves

Types of Fixed Income Securities

Government Securities

Treasury Bills
Notes
Bonds
TIPS
Strips

Money Market Instruments
Agency Securities
Mortgage Backed Securities

Pass Throughs
CMOs

Other Types of Asset Backed Securities: Credit Card, Auto Loan, etc.
Municipal Securities — General Obligation and Revenue Bonds
Corporate Bonds and Preferred Stocks
High Yield Securities

After completing this program participants should be able to:

Recognize and explain the fundamental features of fixed income securities as well as the related terminology and basic market structures

Identify and define the types of risk and sources of return to fixed income investors

Distinguish between and among the primary types of fixed income securities across the sectors of the fixed income market

Identify and describe the features and investment characteristics of US treasury securities: t-bills, t-notes and t-bonds

Explain corporate bond contract features including: trust indentures, call and put provisions, sinking funds, senior versus subordinated debt, secured versus unsecured bonds and conversion options

Describe the main elements of asset securitization, the elemental features of structured securities and the primary characteristics of mortgage backed securities (MBS), asset backed securities (ABS) and collateralized debt obligations (CDOs)