5. Crash Course in Bonds and Debt

COURSE
Wall Street Prep
6 hrs 15 mins

5. Crash Course in Bonds and Debt

COURSE
Wall Street Prep
6 hrs 15 mins
OR
Included in GO1 PremiumStarting from $12 per user for teamsLearn moreTry it free
OR
Included in GO1 PremiumStarting from $12 per user for teamsLearn moreTry it free

Course Overview 

This course will teach you all about bonds. First, we'll take a look at the role of bonds in financing governments, corporations, households and financial institutions around the world. Next, we'll dive into bond math. You'll learn the various calculations and concepts required to accurately analyze the large variety of fixed income products. We'll start slow, but will quickly build up to some of the most traditionally confusing bond concepts: convexity, duration, spot rates, forward rates and the drivers of changes to the all-important yield curve. We conclude with a discussion of credit analysis and an overview of debt capital markets. Enjoy the course!

Instructor - Matan Feldman 

Matan Feldman is Wall Street Prep’s Founder and Managing Partner. His responsibilities include business development, development of courses, and overseeing training programs. Matan has overseen training programs for clients including Morgan Stanley, Credit Suisse, Raymond James, Stifel Nicolaus, FBR Capital Markets, Sagent Advisors, Giuliani Capital Advisors, JP Morgan, Cerberus, Wharton Business School, London Business School, Kellogg, Booth, Stern (NYU), and Cornell. Prior to founding Wall Street Prep, Matan served in several capacities on Wall Street — first as an Analyst in Chase Manhattan Bank's Mergers & Acquisitions Group in New York, and subsequently as an Associate within JP Morgan's Equity Research Group, covering Food & Drug Retail Equities.

Learning
CHAPTER 1: FIXED INCOME MARKET OVERVIEW
5.1.1 What is fixed income?video • 3 mins
5.1.2 Size of the bond marketvideo • 3 mins
5.1.3 Bond market geographic breakdownvideo • 3 mins
CHAPTER 2: BOND BASICS
5.2.1 Bond basic termsvideo • 12 mins
5.2.2 Basic bond mathvideo • 6 mins
5.2.3 Using Excel's RATE() functionvideo • 5 mins
5.2.4 Reinvestment assumption of YTMvideo • 3 mins
5.2.5 YTM vs. current vs. nominal yieldvideo • 2 mins
5.2.6 Annuitiesvideo • 4 mins
5.2.7 Bond price as present value of a bond's cash flowsvideo • 2 mins
5.2.8 Simple bond price exercisevideo • 3 mins
5.2.9 More bond termsvideo • 5 mins
5.2.10 Bond issuance costsvideo • 3 mins
5.2.11 The price/yield relationshipvideo • 4 mins
5.2.12 Primary vs. secondary bond marketvideo • 4 mins
5.2.13 The bid/ask spreadvideo • 3 mins
CHAPTER 3: YIELD CALCULATIONS AND CONVENTIONS
5.3.1 Coupon frequence and bond equivalent yield (BEY)video • 3 mins
5.3.2 BEY vs Effective Annual Yield (EAY)video • 7 mins
5.3.3 Converting BEY to EAYvideo • 4 mins
5.3.4 Compounding conventions of 0-coupon bondsvideo • 8 mins
CHAPTER 4: THE MONEY MARKET MATH
5.4.1 Money market yieldvideo • 8 mins
5.4.2 Money market math exercisesvideo • 5 mins
5.4.3 Compoundingvideo • 10 mins
5.4.4 Discount basisvideo • 13 mins
5.4.5 Converting interest ratesvideo • 6 mins
5.4.6 Money market instrumentsvideo • 3 mins
CHAPTER 5: REAL WORLD BOND PRICING NUANCES
5.5.1 Settlement datevideo • 1 min
5.5.2 Bond pricing between couponsvideo • 1 min
5.5.3 Fractional periodsvideo • 7 mins
5.5.4 Day count conventionvideo • 2 mins
5.5.5 Dirty pricevideo • 2 mins
5.5.6 Dirty price exercisevideo • 6 mins
5.5.7 Clean vs dirty pricevideo • 4 mins
5.5.8 Useful Excel functionsvideo • 3 mins
5.5.9 Bond pricing exercise, part 1video • 7 mins
5.5.10 Bond pricing exercise, part 2video • 8 mins
5.5.11 Bond pricing exercise, part 3video • 5 mins
5.5.12 Interpreting the Bloomberg bond screenvideo • 7 mins
CHAPTER 6: REALIZED COMPOUND YIELD AND HOLDING PERIOD YIELD
5.6.1 Realized compound yield and holding period yieldvideo • 3 mins
5.6.2 RCY / HPY exercise, part 1video • 6 mins
5.6.3 RCY / HPY exercise, part 2video • 3 mins
5.6.4 RCY / HPY exercise, part 3video • 20 mins
CHAPTER 7: INTEREST RATE RISK
5.7.1 Intro to interest rate riskvideo • 4 mins
5.7.2 DV01video • 6 mins
5.7.3 Hedging interest rate riskvideo • 6 mins
5.7.4 Estimating the price impact of rate changesvideo • 3 mins
5.7.5 Modified duration & dollar durationvideo • 5 mins
5.7.6 Modified duration exercisevideo • 6 mins
5.7.7 Useful Excel functions for interest rate riskvideo • 2 mins
5.7.8 Modified duration exercise, part 2video • 7 mins
5.7.9 Modified duration exercise, part 3video • 4 mins
5.7.10 Convexityvideo • 6 mins
5.7.11 Convexity exercisevideo • 14 mins
5.7.12 How convexity is applied in practicevideo • 2 mins
5.7.13 Duration/convexity between couponsvideo • 3 mins
5.7.14 Duration/convexity between coupons exercisevideo • 9 mins
5.7.15 Interpreting the Bloomberg YAS screenvideo • 10 mins
CHAPTER 8: CALLABLE BONDS
5.8.1 Make whole callvideo • 10 mins
5.8.2 Make whole call, Apple examplevideo • 3 mins
5.8.3 Callable bondsvideo • 10 mins
5.8.4 Sinking fund redemptionvideo • 3 mins
5.8.5 Yield to call and yield to worstvideo • 6 mins
CHAPTER 9: THE YIELD CURVE
5.9.1 Yield curve introductionvideo • 5 mins
5.9.2 Term structure theoryvideo • 12 mins
5.9.3 Monetary policy introvideo • 6 mins
5.9.4 Federal funds and the discount ratevideo • 3 mins
5.9.5 Open market operationsvideo • 3 mins
5.9.6 Other central bank toolsvideo • 6 mins
5.9.7 Summary of forces affecting the yield curvevideo • 8 mins
5.9.8 Yield curve shape at various points in the business cyclevideo • 10 mins
CHAPTER 10: SPOT RATES
5.10.1 Spot rates introvideo • 7 mins
5.10.2 Spot rates role in bond valuationvideo • 10 mins
5.10.3 Full vs YTM bond valuation approachesvideo • 7 mins
5.10.4 Bootstrapping the spot curve, part 1video • 11 mins
5.10.5 Bootstrapping the spot curve, part 2video • 14 mins
CHAPTER 11: Z-SPREAD AND OAS
5.11.1 Yield spreads and the z-spreadvideo • 17 mins
5.11.2 Option adjusted spreadvideo • 4 mins
CHAPTER 12: FORWARD RATES
5.12.1 Forward ratesvideo • 9 mins
5.12.2 Forward rate exercise, part 1video • 7 mins
5.12.3 Forward rate exercise, part 2video • 9 mins
5.12.4 Trading strategy using forward ratesvideo • 11 mins
CHAPTER 13: CREDIT ANALYSIS
5.13.1 Credit riskvideo • 8 mins
5.13.2 Credit analysisvideo • 17 mins
5.13.3 Navigating Clear Channels bond agreementvideo • 9 mins
CHAPTER 14: DEBT CAPITAL MARKETS AND THE DEBT ORIGINATION PROCESS
5.14.1 Debt origination primervideo • 1 hr 25 mins
Supplementary Materials
Step by Step Course Manualdocument
2013 Senior Notes Credit Agreementdocument
Bond Formula Cheat Sheetdocument
Bond Math Worksheetdocument
CommunityBlogPartners
© Copyright 2019 GO1 - All Rights Reserved