Fixed Income Analysis - Part 4


This eCourse consists of two modules. Module 1 looks at some of the primary option-based bond hedging strategies and examines their features and characteristics in detail. The module will also discuss the design and implementation of these strategies.

Module 2 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 module also takes a detailed look at the methods used to identify RV trade opportunities.


On completion of this course, you will be able to:
- Identify the different option-based bond hedging strategies available to fixed income fund managers
- Design and implement a specific option-based bond hedging strategy
- Define a relative value (RV) trade and differentiate it from arbitrage and directional trades
- Differentiate between dedicated and non-dedicated RV players
- Describe the methods used to identify RV trading opportunities

Content Highlight

Module 1: Bond Hedging with Options
Topic 1: Introduction to Option-Based Bond Hedging Strategies
Topic 2: Structuring Option-Based Bond Hedges

Module 2: Relative Value Trading - An Introduction
Topic 1: RV Traders
Topic 2: Identifying RV
Topic 3: Overview of RV Trading

Administrative Details

SFC:2.0, PWMA:2.0