Bond Markets

Bond Markets Workshop, (One Day)

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The course will provide:

• A full understanding of the mechanics and terminology of bonds
• Full explanation of how and why bonds are issued
• Full explanation of how and why bonds are purchased
• Identification of the main risks associated with bond markets

Training will be in a workshop format. This will include a mixture of presentation and case study material.

Below is a summary of the workshop content. The day has been placed in a logical sequence and addresses the main products, motivations and risks associated with bond markets.

Morning

Introduction to Workshop

• Objectives
• Format

Bond Markets Terminology & Structures

• The cash-flow structure of bonds
• Interest calculations and day count

Conventions

• Fixed coupon securities
• FRNs
• Zero Coupons
• Collateralised issues
• Public offerings
• Medium term notes
• Private placements

The Issuance Process

• Bond market conditions
• Why issuers seek long term funding
• Investor's & Issuer's objectives
• Selecting the bond structure
• Issue size
• Role of the manager
• Fees
• Maturity
• Timing
• How swaps are used with new issues
• All in price on a fixed & floating basis

Afternoon

Why investors buy bonds

• Different types of investor
• Different risk/reward needs
• Credit, interest rate, foreign exchange risks
• How investors identify value
• Relative value/spreads
• Liquidity

Combining swaps & bonds

• Generic asset swap structures
• Par/par structures
• High coupon bonds
• Low coupon bonds
• Up-front payments
• Accrued interest

Bonds and risk

• Introduction to:
• Credit risk
• Interest rate risk
• FX risk
• Problems with liquidity & valuation

Non-vanilla bonds

• Introduction to how different risk profiles can be added to bonds using swaps

End of Workshop & Review