Fundamentals of Fixed Income

Overview of Debt Capital Markets: The differences between equity and debt products, The differences between loans and bonds, Securitisation The Structure of the Global Bond Markets: Reviewing the role played by a firm’s Debt Capital Markets/ Fixed Income Division,
Features of domestic bonds Governments and Corporates: Eurobonds, The markets in MBS and ABS securities Understanding Bond Mathematics: The concept of time value of money, i.e. the cost of money, Present value and future value Pricing a Bond: Pricing a bond using DCF, The concept of accrued interest, Clean vs. dirty prices, Using the yield to maturity to analyse a bond’s price Understanding Sensitivity Analysis: The determinants of sensitivity, Macaulay and modified duration Credit Ratings: Credit risk, The credit rating agencies