Banques et Finance

Bonds-Fundamentals

Objectives

After this course, you will understand the operating principles and organisation of the bond market having analysed:
• The source and development of fixed income securities
• The players and parties involved
• The new market organisation including the requirements of MIF 2 (MIFIR and MIFID 2
• The basic characteristics of bonds (physical presentation, nominal value, issue price, redemption price…)
• The main explanatory variables encountered
• How to issue bonded debt (types of issue, mechanisms, prospectus and regulatory aspects …)
• The rights and obligations of the bond issuer and holder
• The risks involved in a bond investment and solvency criteria
• The basic elements and characteristics of the various types of bonds (fixed rate, variable rate, hybrids…)
• The principles and methods used to establish a FAIR bond price
• Problems encountered in measuring bond yields
• How to structure and interpret a bond rates curve and what conclusions to draw from it from a structural and economic point of view

Programme
  • THE ORIGINS OF DEBT INSTRUMENTS
  • BASIC ELEMENTS OF THE VARIOUS TYPES OF BONDS (ILLUSTRATION BY EXAMPLE)
    • Traditional products: fixed and variable rate bonds
    • Hybrid products: convertible and reverse convertible bonds, bonds with warrants, indexed bonds…
  • IMPORTANCE OF SOLVENCY CRITERIA
    • Hierarchy of issuers
    • Notion of spread
    • Rating agencies
  • FEATURES AND ASSESSMENT OF RISKS ASSOCIATED WITH BONDS
  • RIGHTS AND OBLIGATIONS OF THE BOND ISSUER
  • RIGHTS AND OBLIGATIONS OF THE BOND HOLDER
  • BIRTH OF A BOND
    • Issue 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 DEVELOPMENT IN THE BOND MARKET
  • MIFIR AND MIFID I AND II IMPACT AND CONSTRAINTS IN TERMS OF MARKET ORGANISATION AND TRANSPARENCY
  • PRINCIPLES OF BOND PRICING
  • PRACTICAL ASPECTS OF AND PROBLEMS INVOLVED IN MEASURING A BOND YIELD
  • THE BOND RATES CURVE: HOW IT WORKS AND INTRODUCTION TO ANALYSIS
Formation
Formation
& Examen
Examen
EN
8 heures
Chambre de Commerce du Grand-Duché de Luxembourg
voir affichage sur place (Chambre de Commerce du Grand-Duché de Luxembourg)
7, rue Alcide de Gasperi
Luxembourg, L-2981
Luxembourg
195,00 EUR