Bond Trading Course

Course Name	Online Bond Trading Portfolio Management Course
Deal	You get instant access to this 1 Bond Trading Course
Hours	3+ Video Hours
Core Coverage	Curve Trading, Managing interest rate risk & Bond portfolio management
Course Validity	Lifetime Access
Eligibility	No eligibility as such.
Pre-Requisites	Basic knowledge about Bonds would be preferable
What do you get?	Certificate of Excellence for the 1courses
Certification Type	Course Completion Certificates
Verifiable Certificates?	Yes, these are verifiable certificates. This means that you will be provided with a unique URL/Link which you can include in your resume/Linkedin profile for online verification.
Type of Training	Video Course – Self Paced Learning
Software Required	None
System Requirement	1 GB RAM or higher
Other Requirement	Speaker / Headphone

---

 What Is Bond Trading?

In simple terms, Bond Trading refers to the buying and Selling of Fixed Income products in the Secondary market.

• Bond Valuation refers to the process which is used to determine the fair market value of the bond by government and corporate companies.
• Unlike the secondary market of stocks which are listed on the stock exchanges, bonds are generally traded over the counter ( OTC trades ) rather than a formal exchange.
• There are various types of bonds in the Fixed Income market. Below mentioned are some of them :
  • Treasury bonds: They are issued by the government treasuries to finance its budgets and to manage the fiscal deficit of the country. They are generally risk-free investments and are therefore priced at lower yields. However, when the economy is down, these bonds do well with the investors.
  • Other US government bonds: they are issued by federal government agencies.
  • Investment Grade Corporate Bonds: They are issued by companies or financing vehicles with much stronger balance sheets and credit ratings.
  • High Yield Bonds: They are issued by companies or financing vehicles with much weaker balance sheets and credit ratings. These are normally issued by start-up companies who do not have a strong presence in the market and there is a risk of default as well.
  • Foreign bonds: In this, the issuer promises to pay off his obligations to the lender in foreign currency. They are issued in foreign currency and the repayment of the same also happens in foreign currency.
  • Mortgage-Backed bonds: Theses are backed by strong mortgages and the value of the bonds decreases as soon as the rate of the mortgage pre-payment rises.
  • Municipal bonds: They are issued by US state and local government bodies normally the municipal corporations.
• It is more common in Investment Banks in the Fixed Income Trading division where bonds are bought and sold daily as and when an opportunity arises.
• Generally, a Fixed Income Trader /dealer is been hired by the company to take care of the bond trading activities.

Example: Suppose an investor wants to buy a tax-free bond at an 8% yield. In this case, the trader will search for the bond in the market, buy that bond in his prop book and then sell it to this investor by keeping a small margin as his profit for helping the investor to get his Investment done and transferring the bond into his DEMAT.

 Which tangible skills you will learn in this Course?

An extensive bond market research since the trader is constantly on the desk seeking new opportunities to earn money. This course will help the candidate to learn the basics of bond trading and how the same is valued.