Fixed Income Derivatives Training
Our fixed income training courses cover all aspects of this asset class. We tend to find that of all the asset classes we teach this is the one that people tend to struggle with most. For example, during our graduate training courses, the participants tend to be well versed in equities and are adept at option theory; however, once the topic moves to fixed income it is common for participants to suffer from a bout of MEGO (“my eyes glaze over”).
We have also published a number of free primers which are available here
Our training courses start by covering the fundamentals of bonds including topics such as market and credit risk. One of our more popular ‘intermediate’ teaches participants the different techniques that are used to identify value within a population of sovereign bonds using various measures of spread (e.g. z spreads, option-adjusted spreads, asset swapped spreads).
Fixed income derivatives
In theory, a swap should be an easy product to understand – after all it is only an exchange of cash flows. Understandably though, participants new to subject do find the product somewhat confusing. As a result the approach we take is to present a swap as a substitute for a funded position in a government bond. The basic idea is that an investor can choose either to buy a bond and finance it through the repo markets or receive a swap rate and pay LIBOR.
FMT can offer training courses on fixed income options such as caps, floors and swaptions. Inevitably each client’s needs will be different and so if there is something you are looking for please feel free to contact us.
Inflation-Linked Bonds and Derivatives
We also offer training courses on inflation. Topics covered include:
- Inflation-linked bonds (ILBs)
- Zero coupon inflation swaps
- Asset swapped ILBs
- Inflation options
Even experienced practitioners have found this topic challenging. See our blog for some of the common inflation myths associated with this topic.
One of the company's principals has co-authored a text on the subject published by Wiley - 'Trading the fixed income, inflation and credit markets'.
What our clients say...
It was really interactive, with problem solving exercises which I really enjoyed
The trainer was very knowledgeable in the subject and made the course interesting
All of the course was enlightening. I liked having to apply what we were taught to different scenarios
Good class interaction as well being able to cope with different levels of experience
The case studies presented were a very useful aid to understanding the material
One highlight of the course was being able to listen to other people's explanations of the material from first hand experience
Excellent explanations and content for the areas covered