Applied Fixed Income

Course details

Are you looking to learn more about how fixed-income products are applied in the real world? From government- and agency-issued debt to zeroes, floaters and linkers, callables and putables, and beyond, this course, designed by Corporate Finance Institute (CFI), covers the fundamentals of how each product and debt type is priced, evaluated, managed, and traded on the market. Hone your skills with practical examples drawn from the industry, featuring a variety of securities from all over the world. By the end of this course, you’ll be equipped with a more nuanced understanding of how fixed-income products work in context.

Learning objectives
Describe the different types of fixed-income products, their issuers, core functions, and investors.
Understand how fixed-income products are priced, evaluated, and managed in markets around the world.
Leverage key financial concepts related to government, government-sponsored enterprise (GSE), and sovereign, supranational, and agency (SSA) bonds.

Concepts

0. Introduction

01 - Course introduction

1. Government, GSE, and SSA Overview

02 - U.S. government debt market
03 - Issuance process
04 - U.S. treasury grey market
05 - Key U.S. treasury auction statistics
06 - Buy backs
07 - Importance of yield curves
08 - Carry and roll of the yield curve
09 - Coupons, maturities, and butterflies
10 - Drivers of U.S. treasuries
11 - European government bonds
12 - German government curve actives
13 - 5-year on-the-run OAT
14 - 2-year on-the-run GILT
15 - Supranational - Government related issuers
16 - Case study - World bank
17 - IBRD debt by currency
18 - Issuing supranational bonds
19 - IBRD bond issuance
20 - IBRD bond example
21 - New issue distribution
22 - Secondary trading IBRD bond
23 - Sovereign agencies
24 - Sovereign agencies yield curves and differences
25 - Sovereign agency - New issuance
26 - Why do investors buy SSA debt
27 - GSE debt
28 - GSE debt market
29 - Fannie Mae (FNMA) and Freddie Mac (FHLMC)
30 - FHLB, FAMC, and FFCB
31 - FHLB bond example
32 - Domestic bond markets
33 - International bond markets
34 - Sample shelf and pricing supplement

2. Zeros, Floaters, and Linkers Overview

35 - Zero-coupon bonds
36 - PV of a zero-coupon bond
37 - Duration and convexity of a zero-coupon bond
38 - Excel example - Duration and convexity of a zero-coupon bond
39 - Separate trading of registered interest and principal of securities
40 - STRIPS investors and FRNs
41 - Floating Rate Notes (FRNs)
42 - Sample FRNs
43 - Yield of an FRN
44 - Pricing FRNs
45 - Duration of an FRN
46 - Linkers
47 - Mechanics of TIPS
48 - TIPS duration and breakeven inflation

3. Callables and Putables

49 - Introduction to callables and putables
50 - Callables and putables - Payouts and issuer
51 - Make-whole call
52 - GSE callable bonds
53 - Binomial interest rate tree
54 - Excel example - Binomial interest rate tree
55 - Yield to call
56 - Yield to worst
57 - Option adjusted spread
58 - Duration and convexity of a callable bond
59 - Putable bonds - Who issues them
60 - Interest rate tree and price-yield relationship
61 - YTP effective duration and convexity for putables

Conclusion

62 - Course summary