Course Overview

After over 3 decades of shrinking bond yields, could the bull run for bonds be finally coming to an end? Find out why bonds have played an important role in private client portfolios and how portfolios should be positioned to counteract a rise in yields in the future.

Agenda

• The main bond characteristics and the difference between clean and dirty prices and their relationship to yield
• The different types of yield curve and why they are used
• Interest rate risk management measures including duration, BPV and convexity
• Various fixed income investment and portfolio management strategies

The Course Agenda

• Overview of bonds and their characteristics
• Advantages and disadvantages of bonds
• Diversification and why to include fixed income in private client portfolios

Yield Curves

• Yield to maturity
• Normal, flat and inverted curves
• Price-yield relationship

Measuring Interest Rate Risk

• Duration
• Modified duration
• Basis point value
• Convexity

Fixed Income Investment Strategies

• Preserving principal and maximising income
• Saving for future goals
• Asset allocation
• Total return

Bond Portfolio Management

• Passive portfolio management
• Active portfolio management
• Interest rate anticipation
• Yield curve positioning
• Barbells and bullets
• Ladders
• Riding the yield curve
• Bond swaps
• Spread trades
• Structured bets
• Matched funding
• Portfolio dedication
• Immunisation