Introduction to Bonds, Prices, Yields & Strategies

This e-training programme comprises 4 topics/tutorials. Answer all quiz questions at the end of each tutorial in order to complete the training.

A) Bond Markets – An Introduction
(Estimated Completion Time: 75 Minutes)

While stock markets are more familiar to the general public, far more capital is raised by issuing debt rather than equity. Bond markets are a critical source of finance for governments, banks, corporations, and other borrowers. In the provision of such finance, these markets offer investors a practically unlimited array of risk and reward profiles.

This tutorial will introduce you to the fundamentals of bonds as a fixed income instrument, covering the key features and terminology associated with these securities in addition to outlining the role of the major players in the market.

B) Bond Prices & Yields – Excel Interactive
(Estimated Completion Time: 20 Minutes)

Microsoft Excel has a number of functions simplifying bond price/yield calculations. These range from simple time value of money (TVM) functions through to more complicated calculations that value bonds between coupon periods. This tutorial demonstrates how to use Excel to calculate a bond’s price/yield, both on a coupon date and between coupon dates. It also outlines how the process can be made easier using some of Excel’s built-in functions.

C) Relative Value Trading – An Introduction
(Estimated Completion Time: 60 Minutes)

In the trading rooms of major investment banks in the early 1990s, you would have come across young market makers who would have explained that much of their performance was due to exploiting market anomalies through relative value trading strategies. RV trading involves being neutral to moves up/down in the overall market, while taking advantage of price differentials between individual assets. It is an attempt to benefit from the relative prices of assets that are seen as being out of line.

This tutorial defines RV trading and differentiates it from arbitrage and directional trading. It examines the characteristics of the market players and the importance of leverage in RV trading. The tutorial also takes a detailed look at the methods used to identify RV trade opportunities.

D) Bond Strategies – Fundamentals
(Estimated Completion Time: 50 Minutes)

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 2020.

3) Access to the e-training materials is valid for 3 months from the date the access is issued. For Trading Representatives who require Continuing Education Credit and had registered at the last quarter of 2020, access is valid till 31 December 2020 (e.g. for access given on 24 November 2020, access is valid till 31 December 2020).

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 5436.

This course is recommended for Trading Representatives and Professionals who need to meet their Continuing Education Credit.

SGX reserves the right to make changes to information regarding the programme if warranted by circumstances beyond its control.