ACF Academy
Markets Training Training
 Markets Training
Targeted Audience:
 Anyone working in the fixed-income market.
 A knowledge of time value of money.
CPE Credits:
 7 hours
Course Level:

Introduction to Fixed Income

The principal objectives of this intensive one-day seminar are to:
  Ensure a sound knowledge of fundamental concepts.
  Give delegates the ability to apply theory to practice – to fix knowledge in delegates’ minds and to build solid foundations to support later learning.
  Introduce the range of fixed-income products, their uses and applications.
  Demonstrate how banks apply the concepts and products to their business.
  Ensure that all concepts are put into immediate practice, using simulation and intensive interactive case studies, to consolidate the learning process.
Hot Topic  Government bonds vs. corporate bonds during the credit crisis.
After attending this program, delegates will:
  Have a solid understanding of the role and functioning of the debt capital markets.
  Be familiar with a wide range of fixed-income instruments, their valuation, pricing, and hedging.
  Understand how these products fit into the bank’s business.
and will be able to effectively apply their knowledge immediately.

Course Outline
 Bond and Money Market Maths
What is a bond?
Bond variations
Pricing coupon securities
Zero-coupon bonds
Price and yield
Gross and net redemption yields
The “pull-to-par”
Amortisation of discount / premium
Day-count conventions
Accrued income
Clean and dirty prices
Current yield vs. yield-to-maturity
Re-investment of coupons
Price sensitivity concepts
Duration, volatility, and convexity
Calculating duration and convexity
Duration as weighted cash-flow times
Pictorial representation of duration
Duration and modified duration
Duration as a measure of price sensitivity
DV01, PV01, PVBP of bonds
Fixed income workshop
 Treasury Markets
Issuers and investors
Why use bonds?
The US Treasury Market
T-Bills, T-Notes, and T-Bonds
Auction process
The secondary market
The treasury yield curve
Treasury strips
Agency securities
Bunds, JGBs, Gilts
The European sovereign debt crisis
US Treasuries simulation
 Corporate and Other Bond Markets
Corporate bonds
Default risk
Bond rating and rating agencies
Covenants and seniority
High-yield bonds
Eurobonds and MTNs
Floating rate notes (FRNs)
Convertibles and hybrids
Origination, syndication, and distribution
Pricing and placing a corporate bond


NB All practical sessions are highlighted like this:
means a Workshop or Simulation
means a Case study


"Detailed and thoroughly covered the features of derivatives, and the virtual trading simulation gave me good understanding."

– Shoko K.