Fixed Income Securities Essay Example for Free

Fixed Income Securities EssayObjectives This course is intended to break apart the fixed income securities markets and its implications for investments. It go forth analyze the market characteristics, instruments, selling techniques, pricing and valuation issues, floating rate instruments, adventure and generate of fixed income securities, portfolio management techniques, term structure modeling, corporate debt and convertibles, bonds with embedded options, sub-national debt analysis, credit risk analysis, and delight rate risk management with swaps, options and futures. The course intends to cover the specific features of the Indian Fixed Income Securities Markets. The course exit construct several Excel based techniques to analyze bond cashflows analytics.Course Structure The course will include lectures, bond cash flows analysis, term paper assignments and class exercises.Contents arouse 1 Indian Fixed Income Markets, Institutional Arrangements, Market Participants an d Instruments, Investors Perspectives, Market Conventions, Debt Management Monetary policiesLecture 2 Bond Valuation, sequence Value of Money, Price and Yield Conventions, Bond Valuation utilize Yield Curve, Yield return, horizon return Valuation of Repo Reverse RepoLecture 3 Valuation of other Bonds Floating Rate securities, Inflation major power bonds, bonds with embedded optionsLecture 4 Introduction to Bloomberg, Interpretations of Fixed Income Instruments using Bloomberg Templates, Understanding Market Quotes and ConventionsLecture 5 Corporate Bonds, Valuation, Implications for Rating Migration, Investment Grade and Low Rated Bonds, Valuation of ConvertiblesLecture 6 7 attempt Identification in Bonds Duration, Convexity, and Portfolio ImmunizationLecture 8 Yield Curve Analysis, Par Bootstrapping, Modeling YC using Nelson-Seigel and Spline Methods, Spot Forward rates, , Valuation of STRIPSLecture 9 Term Structure of pertain grade theories Interest Rate Models (Cox-I ngersoll-Ross, Vasicek, HJM Model)Lecture 10 Government Securities Auction, Market Implications, WI Markets, Auction Primary Dealers Lecture 11 Auction Bidding Game (students play bidding game and trade online in Computer Lab)Lecture 12 Bond Portfolio Construction Management Bullet, Barbell Ladder Strategies, Construction of Bond Portfolio Portfolio with Corporate BondsLecture 13, 14 15 Interest Rate Derivatives FRAs, Swaps, Futures, Options, Eurodollar Futures, OIS(Overnight Index Swaps), OIS Trading ArbitrageLecture 16 Bonds with embedded options, BDT Model(Modeling Interest Rate Tree)Lecture 17 Mortgage-Backed Securities, Prepayments, Option Adjusted Spreads(OAS)Lecture 18 opinion Derivatives, Valuation of Credit Default Swaps, Indian CDSLecture 19 20 Assignment Discussions PresentationsOther handoutsThe course will provide several articles in debt and fixed income securities, circulars of RBI and FIMMDA, empirical techniques dealing with bond management, as well as my p resentations, excel spreadsheet calculations, valuation templates from Bloomberg as well as web resources.Expectations My expectation is that students work hard during the course, gain bond mathematics, how Indian bond market works and its implications on fixed income investing as an plus class, and portfolio implications for banks and financial institutions.