Introduction
For well over a decade interest rates have been trading at ultra low and even negative levels. It would seem likely that at some stage interest rates will rise, resulting in a fall in bond rices. This course considers some of the tactics that could be used to hedge the associated market and credit risk of a fixed income portfolio.
The course first considers how yield curves move and how they are impacted by central bank activity. This analysis highlights 2-3 active strategies that can be used to exploit the likely change in the slope and curvature of the yield curve. The next part of the course considers how the market risk of a portfolio could be hedged using a variety of fixed income derivatives including interest rate swaps, bond futures and short-term eurodollar futures. The course also looks at how portfolio credit risk could be hedged using single name and index default swaps.
Some of the Learning Outcomes
Trainer
Neil C Schofield is the Managing Director of Financial Markets Training Limited. Neil has been a professional financial trainer for 30 years and prior to setting up his own training company in 2008 was head of financial markets training at Barclays Investment Bank in London.
Neil has trained many differenttypes ofinstitutions ranging from central banks, investment banks, commercial banks, hedge funds, proprietary tradingfirms and institutional investors. He has authored three text books including “Trading the fixed income, inflation and credit markets”, which was published by Wiley.
Feel free to suggest the topics that you would like to learn about at
our Fixed Income Portfolio Management In-house Training.
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Who should attend?
• Fixed income portfolio managers
• Risk managers
• Middle office staff
• Auditors
• Bond traders
• Fixed income sales
• Compliance staff
• Technology staff responsible for fixed income systems
• Central Bank staff
