This 5-day training programme provides participants with a highly practical course agenda dedicated to enhancing understanding and skills in all aspects of bond trading and portfolio management, from strategic asset allocation and objective setting to benchmark selection, portfolio construction and risk budgeting, identification and implementation of active strategies, through to performance measurement and attribution analysis.
The increasingly important role of derivatives within portfolio management is also reflected within the course agenda. Delegates will gain a deeper understanding of interest rate and credit derivatives, their roles in fixed income analysis and identifying trading opportunities, application to implementation of active trading and risk management strategies, potentially offering greater efficiency in portfolio management.
Bond Portfolio Management Trading Simulation
In addition to the strategic perspectives, the programme agenda provides delegates with realistic exposure to the day to day challenges and opportunities facing the trader or portfolio manager – identifying and interpreting market signals, constructing a broad spectrum of strategies, and implementing them within a portfolio context subject to risk management constraints, in pursuit of superior risk adjusted performance.
To this end a significant component of the programme timetable incorporates a Bond Portfolio Management Trading Simulation, during which each day over the course of the programme, delegates will participate in a realistic fixed income portfolio management simulation – using real-time market price and risk data, with access to securities and derivatives drawn from the global fixed income markets, implementing a range of active strategies within a portfolio context, subject to risk constraints, with the ultimate objective of generating enhanced risk adjusted returns over the 5 day course duration.
The overall objectives of the Bond Portfolio Management Trading Simulation workshop are to provide a practical and realistic context to understand the key characteristics of fixed income securities and derivatives, their relationship to the prevailing market environment, and to enhance understanding of the key processes, objectives and constraints of successful bond portfolio management.
Classroom based teaching, complemented by extensive use of case studies and spreadsheet based exercises enable participants to master a practical understanding of all aspects of the course agenda, is complemented by the Bond Portfolio Management Trading Simulation, during which each day delegates manage a portfolio of fixed income securities and derivatives within pre-determined constraints, using real-time market price and risk data, within a set of constrained risk parameters, with the objective of generating enhanced risk-adjusted returns over the course duration.
In addition to comprehensive course documentation, participants are provided with a suite of spreadsheet based software to utilise during the programme within the Bond Portfolio Management Simulation and other exercises. They are free to retain this for their own use after the course conclusion.
Summary Programme Overview and Objectives:
- Bond Portfolio Management Strategy– Strategic and Tactical Asset Allocation
- Fixed Income Pricing and Risk Analysis
- Benchmark design and selection
- Portfolio Construction and Risk Budgeting
- Identifying and Interpreting Market Signals
- Execution of Active Management Strategies
- Enhancing Risk-adjusted Portfolio Returns
- Efficient Use of Derivatives in Fixed Income Portfolio Management
- Interest Rate and Credit Derivatives: Fundamental Characteristics; Pricing and Risk Characteristics
- Bond Portfolio Risk Measurement and Management
- Performance Measurement and Attribution Analysis