Fixed Income Duration, Convexity and Credit Risk
This e-training programme comprises 3 topics/tutorials. Answer all quiz questions at the end of each tutorial in order to complete the training.
A) Duration & Convexity
(Estimated Completion Time: 90 Minutes)
For market participants that buy a bond, collect the coupon payments and hold the bond to maturity, market volatility is not a major concern (ignoring the possible reinvestment risk for their coupon payments); interest is received according to a predetermined rate and schedule, and the principal is returned at maturity. However, non-‘buy-and-hold’ investors that buy and sell bonds prior to maturity are exposed to many risks, most significantly interest rate volatility (bond prices and yields/interest rates are inversely related). Duration and convexity – the subject of this tutorial – are important concepts used in measuring the price volatility of a bond, or its price sensitivity with respect to a change in its yield. Being aware of these concepts helps investors to protect themselves from bond price risk.
B) Fixed Income – Credit Risk
(Estimated Completion Time: 90 Minutes)
Increasingly, agents and investors in fixed income have set their sights beyond the traditional government bond markets towards the more lucrative returns available when credit risk is allied to interest rate risk. In recent years, developments have led to the emergence of credit as a truly independent asset class, with its own derivative markets and idiosyncrasies. As involvement has grown, investors have become more sophisticated, and analysis and products have become more complex. This tutorial extends the analysis of risks facing fixed income investors beyond merely interest rate risk, and into the sphere of credit risk. It describes the credit characteristics of differing forms of debt issuance, market evaluation of credit risk, and the roles of rating agencies in the credit universe.
Terms and Conditions
1) Each e-training programme takes approximately 3 hours to complete.
2) In order to qualify for Continuing Education credits from SGX, please complete all quiz questions found at the end of each tutorial (a 70% pass rate is required) by 31 December 2018.
3) Access to the e-training materials is valid for 3 months from the date the access is issued. Trading Representative who requires Continuing Education Credit and registered at the last quarter of 2018, access is valid till 31 December 2018 (i.e. access given on 24 November 2018, access is valid till 31 December 2018).
4) Upon successful registration, an email with the access details and password would be sent to you within 2 working days.
5) If participants wish to make any changes to their application or request for a refund, written notice should be given within 10 business days of receiving the access ID and password to the online programme and provided the access has not been utilised. There will be an administrative fee of 20% of the fees paid. There will be no changes or refund if notice is given thereafter or if the access has been utilised.
6) Please login using Microsoft Internet Explorer from your PC or Laptop.
7) Please note that the learning management system is not compatible with browsers on Apple iOS or other operating systems.
8) For assistance please contact e-training@sgxacademy.com or call 6327 5438.
SGX reserves the right to make changes to information regarding the programme if warranted by circumstances beyond its control.