Understanding Yield Curve Dynamics And Market Applications

Last updated 8/2022MP4 | Video: h264, 1280x720 | Audio: AAC, 44.1 KHzLanguage: English | Size: 3.35 GB | Duration: 3h 9m

What you'll learn

Understand how yield curves depict fixed income instrument pricing and risk premiums

Explain duration as a measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates

Describe the different types of duration, and how each is used in managing and/or quantifying risk

iscuss alternative yield curves that are used to price or assess the value of fixed income instruments

Apply total return analysis over a variety of interest rate scenarios

Interpret current coupon yield curves, par coupon yield curves, spot rate curves, treasury strip curves and forward rate curves

Use TRA to assess risk and return as an alternative to simply using yield to maturity as an estimate of future returns

Requirements

Participants are expected to have basic math knowledge coming into this course

A financial calculator is recommended to get the most out of this course

Knowledge of the English language

Description

In the finance business, a yield curve is used to visually display the current conditions of the market, and specifically some particular fixed income product (such as a corporate bond, or government note). The yield curve is a snapshot of interest rates in that market at a point in , plotting the “yield to maturity” on the vertical axis and the “ to maturity” on the horizontal axis. A yield curve also is somes referred to as “the term structure of interest rates.”Simply put, if you are involved in the financial markets on any level (as an investor, analyst, salesperson, banker, advisor, or trader) you must understand what yield curves are, how they work (with changes in economic conditions, market movements, government policy, etc.), and you must be able to explain these curves to lay-people (including your colleagues and clients).In this course, we dive deep into yield curves, although we start out with the basics:What is a yield curve and how is it “constructed?Why do yield curves matter?What is “duration” and how does that impact the shape of the curve?How is duration used in financial and market analysisWhat are “spot” and “forward” ratesWhat is “total return analysis?”If you want to “look smart” and BE smart in the investment management, investment banking, investor advisory and other related financial fields, this course is a MUST, not merely “optional.”More about this course and StarweaverThis course is led by a seasoned capital markets industry practitioner and executive with many years of hands-on, in-the-trenches financial markets sales, trading and analysis work. It has been designed, produced and delivered by Starweaver. Starweaver is one of the most highly regarded, well-established training providers in the World, providing training courses to many of the leading financial institutions and technology companies, including:Ahli United Bank; Mashreqbank; American Express; ANZ Bank; ATT; Banco Votorantim; Bank of America; Bank of America Global Markets; Bank of America Private Bank; Barclay Bank; BMO Financial Group; BMO Financial Services; BNP Paribas; Boeing; a; Citibank; Cognizant; Commerzbank; Credit Lyonnais/Calyon; Electrosonic; Farm Credit Administration; Fifth Third Bank; GENPACT; GEP Software; GLG Group; Hartford; HCL; HCL; Helaba; HSBC; HSBC Corporate Bank; HSBC India; HSBC Private Bank; Legal & General; National Australia Bank; Nomura Securities; PNC Financial Services Group; Quintiles; RAK Bank; Regions Bank; Royal Bank of Canada; Royal Bank of Scotland; Santander Corporate Bank; Tata Consultancy Services; Union Bank; ValueMomentum; Wells Fargo; Wells Fargo India Solutions; Westpac Corporate Bank; Wipro; and, many others.Starweaver has and continues to deliver 1000s of live in-person and online education for organizational training programs for new hires and induction, as well as mid-career and senior-level immersion and leadership courses.If you are looking for live streaming education or want to understand what courses might be best for you in technology or business, just google:starweaver journey builder starweaver[dot]comHappy learning.

Overview

Section 1: Introduction to Yield Curves

Lecture 1 Welcome!

Lecture 2 Introduction to Yield Curves

Lecture 3 Types of Yield Curves and Yield Curve Spreads

Section 2: Duration and its Applications

Lecture 4 Introduction to Duration

Lecture 5 Types of Duration

Lecture 6 Modified Duration

Lecture 7 Duration Illustration

Lecture 8 Duration of Callable Bonds

Section 3: The Level of Rates and Shape of the Yield Curve