An online self-pace course powered by Fintelligence.

Learning content

The topic Fixed income investments deals with the asset class of interest rate products. It includes the basis of interest rate calculation, yields, interest rate structure and risks.

In addition, important money market and capital instruments are presented in detail and with many examples. The topic also discusses the issuance and placement of interest rate products.
Finally, key aspects of the strategy of fixed income investments are covered comprehensively from the perspective of a client.

Target Audience

Asset managers, portfolio managers, investment analysts, traders, market specialists, treasury managers, client advisors, product specialists.

Learning agenda and time 

1. Fundamentals (20 minutes)
2. Yield, interest rate structure and risks (30 minutes)
3. Money-market instruments (20 minutes)
4. Capital market instruments I (40 minutes)
5. Capital market instruments II (35 minutes)
6. Issuance and placement (20 minutes)
7. Bond strategy (35 minutes)
8. Learning control (15 minutes)

Learning goals for

'Fundamentals'
By studying this module, you will achieve the following learning goals:

• You will know the function of the interest rate and the essential characteristics of interest rates.
• You will know about the various submarkets for fixed income investments.
• You will understand the basic characteristics of bonds and be able to explain a fixed coupon bond to a client.

'Yield, interest rate structure and risks'
By studying this module, you will achieve the following learning goals:

• You will understand the relationship between interest rate, yield and bond prices and be able to calculate simple yield figures.
• You will understand the concept of the time value of money and be able to calculate compound interest.
• You will get to know the role of the interest rate structure and be able to explain what determines it.
• You will be able to illustrate the significant risks of fixed income investments for a client and know the meaning of duration.

'Money market instruments'
By studying this module, you will achieve the following learning goals:

• You will learn the typical characteristics of the money market and know how to differentiate it from the capital market.
• You will get to know money-market instruments and know about their distinguishing criteria.
• You will be able to advise a client with respect to the suitability of money-market instruments.

'Capital market instruments I'
By studying this module, you will achieve the following learning goals:

• You will understand the different configuration options for capital market instruments and learn about their use in practice.
• You will know the main obligors and can assess their creditworthness.
• You will be familiar with the payoff diagrams of various capital market instruments.
• You will know about the characteristics of convertible bonds and warrant bonds and are able to calculate conversion and option premiums.
• You will know how the capital market instruments are presented on product descriptions and how to interpret them.

'Capital market instruments II'
By studying this module, you will achieve the following learning goals:

• You will become familiar with the most important secured bonds
• You will get to know about subordinated bonds and their opportunities and risks.
• You will get to know the peculiarities of foreign-currency bonds and bonds with termination option.

'Issuance and placement'
By studying this module, you will achieve the following learning goals:

• You will get to know the major differences between public issue and private placement, as well as between self and third-party issue.
• You will understand the process of the issue of bonds and be able to explain the different stages of issue to a client.

'Bond strategy'
By studying this module, you will achieve the following learning goals:

• You will understand the goals of an investment strategy in the light of the risk tolerance of clients.
• You can describe essential tax aspects of investing in fixed income products.
• You will get to know about the central importance of diversification for the success of investments.
• You will understand basic strategies of bond management and grasp the challenges for fixed income investments, resulting from the current low interest rate environment.

Method

Self-study via interactive e-learning module with discoverable content and videos plus final learning control via online test.

Learning control

Your online self-control test consists of 15 to 20 multiple choice questions. You will pass the test if you reach at least 70% of the maximum score.

Period of access
12 months from the registration and account creation.

Accreditation

You will receive CPD hours from CISI related to the number of training hours.

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