Overview
Applied Fixed Income Course Overview
This Applied Fixed Income course builds on the fixed income fundamentals and delves deeper into government & agency-issued debt, zeroes, floaters & linkers, and callables & putables. It provides knowledge on how they are priced with industry-relevant examples of each type of debt. You will have the opportunity to work through practice examples of certain types of debt and learn how to identify critical information on Refinitiv Workspace. By the end of this course, you will have an enhanced understanding of fixed income products which will prepare you for learning advanced fixed income courses.
We will explore the following:
- Government, GSE, and SSA Debt
- Zeroes, Floaters, and Linkers
- Callables and Putables
Applied Fixed Income Learning Objectives
Upon completing this course, you will be able to:- Describe the different types of fixed income products, their issuers, and investors
- Understand in-depth about their pricing, duration, and convexity
- Understand how to calculate bond yields from Bloomberg
Applied Fixed Income Is an Elective Course of CFI’s CMSA® Program
CFI’s Capital Markets & Securities Analyst (CMSA)® program covers all the basic, intermediate, and advanced topics about sales and trading, investment banking, and asset management. This program teaches you trading strategies used in the finance and capital markets industry. It is ideal for students who want to learn how to trade different asset classes. The program is completely online, so you can take it at your own pace from anywhere in the world. Common career paths for students who take the CMSA® are sales & trading, asset management, wealth management, treasury, risk management, and other capital markets careers.
Who Should Take This CMSA® Course?
This Applied Fixed Income course is perfect for anyone who wants to build up their understanding of fixed income products. This course is designed to equip anyone who desires to begin a career in the capital markets on the fixed income desk.
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See All Certification ProgramsWhat you'll learn
Lesson
Multimedia
Exams
Files
Government, GSE, and SSA Overview
Introduction to the Course
Free Preview
Downloadable Files
Free Preview
US Government Debt Market
Free Preview
Bloomberg PX1 - draft
Free Preview
Issuance Process
Free Preview
US Treasury Grey Market
Free Preview
Key US Treasury Auction Statistics
Free Preview
Buybacks
Interactive Exercise 1
Importance of Yield Curves
Carry and Roll
Coupons, Maturities, and Butterflies
Drivers of US Treasuries
European Government Bonds
Interactive Exercise 2
German Government Curve Actives
5-Year On-The-Run OAT
2-Year On-The-Run GILT
Supranationals
Interactive Exercise 3
Case Study - World Bank
IBRD Debt
Issuing Supranational Bonds
IBRD Bond Issuance
IBRD Bond Example
New Issue Distribution
Secondary Trading IBRD Bond
Sovereign Agencies
Sovereign Agencies Yield Curves and Differences
Sovereign Agency - New Issuance
Why Do Investors Buy SSA Debt
Interactive Exercise 4
GSE Debt
GSE Debt Market
Fannie Mae and Freddie Mac
Interactive Exercise 5
FHLB, FAMC and FFCB
FHLB Bond Example
Domestic Bond Markets
International Bond Markets
Sample Shelf and Pricing Supplement
Zeros, Floaters, and Linkers Overview
Zero-Coupon Bonds
PV of a Zero-Coupon Bond
Duration and Convexity of a Zero-Coupon Bond
Excel Example - Duration and Convexity of a Zero-Coupon Bond
Downloadable files
STRIPS
STRIPS Investors and FRNs
FRNs
Interactive Exercise 6
Sample FRNs
Yield of an FRN
Pricing FRNs
Duration of an FRN
Linkers
Interactive Exercises 7
Mechanics of TIPS
TIPS Duration and Breakeven Inflation
Interactive Exercise 8
Callables and Putables
Introduction to Callables and Putables
Callables and Putables - Payouts and Issuer
Make-whole Call
GSE Callable Bonds
Binomial Interest Rate Tree
Downloadable files
Excel Example - Binomial Interest Rate Tree
Yield To Call
Yield To Worst
Option Adjusted Spread
Duration and Convexity of a Callable Bond
Interactive Exercise 9
Putable Bond
Interest Rate Tree and Price-Yield Relationship
Downloadable Files
YTP Effective Duration and Convexity for Putables
Course Summary
Qualified Assessment
This Course is Part of the Following Programs
Why stop here? Expand your skills and show your expertise with the professional certifications, specializations, and CPE credits you’re already on your way to earning.
All Capital Markets & Securities Analyst (CMSA)® Courses
- Skills Learned Trading strategies used in the finance and capital markets
- Career Prep Work in capital markets, whether on the buy-side or the sell-side
What our students say
Brilliant instructor
Kelvin Yau Chuan Wei
Excellent program!
Amazing topic to have an overall understanding of bonds.
Amazing topic to have an overall understanding of bonds.
Guilherme Medeiros
Pretty Okay
Quite insightful but not well detailed
Quite insightful but not well detailed
Oluwaseun Ayoola Williams
An experience of a lifetime
Bond valuation is interesting but complex to understand. The instructor makes the course plain sailing, which to us lessens the anxiety during the learning process. I will have to go back to the videos to continuously renew my learning experience.
Bond valuation is interesting but complex to understand. The instructor makes the course plain sailing, which to us lessens the anxiety during the learning process. I will have to go back to the videos to continuously renew my learning experience.
