Fixed Income Analysis - Part 3 (2018)


This eCourse consists of two modules. Basis is the term given to the difference between the cash bond price and the price of the nearby futures contract.  Module 1 examines what actually means, and the reasons for such a differential. The factors causing this differential do not stay constant over time, so this module investigates how time affects these factors. Finally, it explains why in most cases only one bond from the many deliverable bonds into a bond futures contract is ever chosen to be delivered.

Module 2 looks at the key features of Zero-coupon bonds, which are securities that are issued at a deep discount to par and pay no interim interest before maturity. It also explains how they are priced and traded, the main issuers and investors in these instruments, and their key variants.


On completion of this course, you will be able to:
- Identify basis trading strategies for portfolio managers
- Execute basis trades
- Recognize the key features of zero-coupon bonds and how they are priced
- Identify the different issuers and investors in zero-coupon bonds and the benefits and risks they face with these securities
- List the key variants of zero-coupon bonds

Content Highlight

Module 1: Basis Trading
Topic 1: Strategies for Portfolio Managers
Topic 2: Executing the Trade

Module 2: Zero-Coupon Securities
Topic 1: Overview of Zero-Coupon Securities
Topic 2: Risks of Zero-Coupon Securities
Topic 3: Zero-Coupon Bond Issuers & Structures

Administrative Details

SFC:1.50, PWMA:1.50
All Member: HKD435
Non-Member: HKD615
Staff of Corporate Member: HKD435