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Global Markets and Time Zones
CPEs:
24
Instructor:
Dennis Cox
Level:
Intermediate
Tuition:
£3,495.00
Updated Managing Bond Portfolios in Banking TR039
Location: Global Markets and Time Zones
Duration: 3 days
Programme Director: Dennis Cox FCSI FRISM FCA AIIA BFP
All Dates & Locations
Venue Details
Experience the highly-interactive expert-led social learning through Virtual Classroom via Cisco WebEx from Risk Reward.
All our 2023 Live, on-site and Live Virtual Classroom events feature shared (or discrete) live chat between delegates and the expert, participate in topical surveys, polling questions, group exercises and case studies for a tried -and- true engaging and gratifying learning experience.
Need to bring this course in house, train your team or 1:1? Simply contact us for significant cost savings and dates best suited to meet your specific needs.
Agenda Highlights
Session 1: The Nature and Risks of Bonds
Session 2: Portfolio Construction
Session 3: Fixed Income Risk Modelling
Session 4: Bonds, Credit Analysis and Credit Risk Management
Session 5: Building a Suitable Portfolio
Session 6: Liquidity, Trading, and Trading Costs
Session 7: Portfolio Strategies
Overview
The bond market is going through a strategic change as a result of the changing interest rate and inflation environment. The recent bank failures have highlighted the importance of effectively managing bond portfolio in banks. Governance and risk professionals need to consider the risks that they are running in maintaining such portfolios and take timely action to mitigate any concerns that might exist regardless of the regulatory environment.
This timely event looks at the impact of these changes and the approaches to managing risks that are appropriate . It considers the risks of a bond portfolio and what it means to undertake effective bond portfolio management.
Who Should Attend
- Boards and senior management
- Regulators
- Risk managers
- Internal auditors
- Treasury professionals
Additional Course Information
What Does It Cover?
The Nature and Risks of Bonds
- The basic principles
- The key role that bond portfolios play in banking
- Indices
- Rate and return
- Yield and spread
- Bonds and bank capital management
- Bonds and bank liquidity
- The impact of inflation and interest rates
- Duration and modelling
- Accounting and valuation issues
- The problem with held to maturity assets
Portfolio Construction
- Basic issues
- Selecting markets and assets
- The risks to be addressed
- Risk mitigation approaches and instruments
- Stress testing a bond portfolio
- Impact on contingency funding plans
Fixed Income Risk Modelling
- Use of models
- Key issues
- Default probability and recovery rates
- Correlation
- Other types of bonds
Bonds, Credit Analysis and Credit Risk Management
- Valuing Corporate Credit: Quantitative Approaches versus Fundamental Analysis
- What should be done?
- The use of ratings and their limitations
- An Introduction to Credit Risk Models
- Capturing the Credit Alpha
Building a Suitable Portfolio
- Global Bond Investing
- Managing a Multicurrency Bond Portfolio
- Developing a portfolio
- Portfolio management techniques
- Risk concentration analysis
- Stress testing and scenario modelling
- Concentration analysis and hedging
- Suitable tools and approaches
Liquidity, Trading, and Trading Costs
- The risk of bonds and bond markets
- How does bond liquidity change
- The relationship with asset pricing
- The impact of interest rates
- Risk identification
- Product pricing and income
- Trading patterns and problems
Portfolio Strategies
- Forward looking measures
- Economic expectations
- Leading or lagging
- The Active Decisions to be taken
- Liability-Based Benchmarks
- Risk Budgeting for Fixed Income Portfolios
- Performance attribution
- Portfolio overlays
- Portfolio optimization
Discussion, Q&A and (Optional) Assessment
END
Learning Objectives
Delegates who complete this course will gain specialist knowledge and understand understand current best practice in bond portfolio management and how to develop approaches that will effectively consider the issues that are likely to arise in practice, specifically
- The nature of the markets
- The impact of portfolio management
- The issues regarding portfolio construction
- The role of stress testing
- The approaches to risk mitigation
- The risk profile of instruments and its impact on pricing
- The credit modelling of bonds
Delegates who complete the course will receive a Certificate with equivalent CPD/CPE credits via email; and for those who require an assessment as a demonstration of competency via training a 20 multiple-choice questions and answers quiz, remotely invigilated with results report and 1 resit, is available at no additional charge when requested at time of reservation.
Social Learning & Methods
Highly interactive expert-led intensive presentation, Q&A, group real-time in-depth case studies, regulation and discussion supported by key principles and theory. The virtual learning platform uses safe, industry preferred encrypted Cisco WebEx to optimize live face-to-face visual interaction, discrete chat, for polling and quizzes.
(An invitation via email with access link is included for all participants.)
Registration
Updated Managing Bond Portfolios in Banking
Course Fee
Course Fee (per person):
GBP £3,495.00 (+ UK VAT when applicable)
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