Context

• The link between savers and borrowers
• Debt versus equity
• Leverage impact

Definition of a bond

• Building a simple bond from scratch
• Different types of bond

Pricing basics

• Yields and yield curves
• The price/yield relationship

Primary versus secondary markets

Bond mathematics and analysis

• Time value of money and the price of a bond
• Interest rate risks
• Sensitivity - Duration and convexity
• Bond ‘strips’
• Repayment risks and credit ratings
• Yields (YTM and the running yield)
• Credit spreads
• Clean versus dirty prices

Bond portfolios

• Active versus passive strategies (including barbell and bullet portfolios)

Synthetics and securitisations

• Securitisation/asset backed issues
• Collateralised Debt Obligations (CDOs)
• Credit Default Swaps