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Index linked bonds and swaps - 2.5 hours

A foundation course that explains index linked markets. This includes how inflation is measured, how these bonds and swaps work and who is buying and selling.

It is suitable for those working in or around financial markets who need to know more.

There are simple examples with time for questions and answers.

This course is only available in-house and is suitable for up to 12 people.

This is what is covered:

  • Nominal and real interest
  • Inflation linked bond markets
  • Natural payers and receivers of inflation
  • Inflation indices
  • How an index linked bond works
  • Using index values to calculate principal and coupons
  • Index ratios
  • Calculating a daily lagged inflation rate using interpolation
  • The breakeven rate – what it tells you
  • Zero coupon inflation swaps –how they work
  • Index linked bonds, how they work
  • Inflation caps what they are and how they can be used
  • Inflation floors, how they work, impact on bond prices
  • How and why a bank may be involved in this market - example

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