Bonds - Fundamentals

By the end of this course, you will have analysed and understood the principles and organisation of the bond market:

• The origin and evolution of fixed income securities
• The players and parties involved
• The new market organisation, including the requirements of MIF 2 (MIFIR/MIFID 2)
• The basic characteristics of bonds (physical presentation, nominal value, issue price, redemption price…)
• The main explanatory variables encountered
• How bonds are issue (types of issue, mechanisms, prospectus and regulatory aspects …)
• The rights and obligations of the bond issuers and holders
• The risks of investing in bond investment and solvency criteria
• The basic elements and characteristics of the different types of bonds (fixed rate, variable rate, hybrids…)
• The principles and methods used to determine a fair bond price
• Problems encountered when measuring bond yields
• How to construct and interpret a bond yield curve and the conclusions to be drawn from it from a structural and economic point of view

• THE ORIGINS OF DEBT INSTRUMENTS
• BASIC ELEMENTS OF THE DIFFERENT TYPES OF BONDS (ILLUSTRATED WITH EXAMPLES)
  • Traditional products: fixed and floating rate bonds
  • Hybrid products: convertible and reverse convertible bonds, warrants bonds, index-linked bonds…
• IMPORTANCE OF SOLVENCY CRITERIA
  • Hierarchy of issuers
  • Notion of spread
  • Rating agencies
• cHARACTERISTICS AND EVALUATION OF RISKS ASSOCIATED WITH BONDS
• RIGHTS AND RESPONSIBILITIES OF THE BOND ISSUER
• RIGHTS AND OBLIGATIONS OF THE BONDHOLDER
• BIRTH OF A BOND
  • Issuance mechanism
  • Issue prospectus
  • Regulatory aspects
• BASIC CHARACTERISTICS OF THE PRODUCT AND ISSUE CONTRACT
• TYPES OF PLAYERS AND OTHER PARTIES INVOLVED IN THE BOND MARKET
• DESCRIPTION OF DISINTERMEDIATION, INTERNATIONAL DEVELOPMENT AND EVOLUTION OF THE BOND MARKET
• MIFIR AND MIFID I AND II IMPACT AND CONSTRAINTS IN TERMS ON MARKET ORGANISATION AND TRANSPARENCY
• PRINCIPLES OF BOND PRICING
• PRACTICAL ASPECTS OF AND PROBLEMS INVOLVED OF MEASURING A BOND YIELD
• THE YIELD CURVE: HOW IT WORKS AND INTRODUCTION TO ANALYSIS

This training is offered in blended-learning, you will receive access to a preparatory course in e-learning 5 days before the course.

The training programme is designed for assistants, back office employees, juniors in OPC or PB, persons wishing to enter in bank industry, seeking an overview or refresh on bonds.