Why should one take this course?
- To understand the fundamental features of debt instruments.
- To understand the trading of the debt instruments on the NSE-WDM Segment.
- To know the regulatory and procedural aspects related to debt market.
- To learn the concepts of bond valuation, yield curve, bootstrapping and duration.
Who will benefit from this course?
- Debt Market Dealers
- Employees of BPO/IT Companies
- Anybody having interest in the Fixed Income Market
FIMMDA-NSE Debt Market Syllabus
Basic concepts of debt instruments
Indian Debt Markets
Different types of products and participants; Secondary market for debt instruments
Central Government Securities: Bonds
Primary issuance process; Participants in Government bond markets; Constituent SGL accounts; Concept of Primary dealers, Satellite dealers; Secondary markets for Government bonds; Settlement of trades in G-Secs; Clearing corporation; Negotiated Dealing System; Liquidity Adjustment Facility (LAF).
Central Government Securities: Treasury Bills
Issuance process; Cut-Off yields; Investors in T-Bills; Secondary market activity in T-bills.
State Government Bonds
Gross fiscal deficit of State Governments and its financing; Volume, Coupon rates and ownership pattern of State Government bonds.
Call Money Markets
Participants in the call markets; Call rates
Corporate Debt: Bond
Market segments; Issue process; Issue management and Book building; Terms of a debenture issue; credit rating.
Commercial Paper & Certificate of Deposits
Guidelines for CP Issue; Rating notches for CPs; Growth in the CP market; Stamp duty;
Certificates of deposit.
Repo rate; Calculating settlement amounts in Repo transactions; Advantages of Repos; Recent issues in repo market in India; Secondary market transactions in Repos; Repo accounting.
Bond Market Indices and Benchmarks
I-Bex: Sovereign bond index; NSE-MIBID/MIBOR
Trading Mechanism in the NSE-WDM
Description of the NSE WDM trading system; Order types and conditions; Order entry in negotiated trades market; Order validation and matching; Trade management; Reports; Settlement; Rates of brokerage.
Regulatory and Procedural Aspects
G-Sec Act 2006; SEBI (Issue and Listing of Debt Securities) Regulations 2008 and Market Practices and Procedures
Valuation of Bonds
Bond valuation; Accrued interest; Yield; Weighted yield; YTM of a portfolio; Realized yield; Yield-price relationships of bonds
Yield Curve and Term Structure of Interest Rates
Yield Curve; Bootstrapping; Alternate methodologies to estimate the yield curve; Theories of the term structure of interest rates
Introduction and definition; Calculating duration of a coupon paying bond; Computing duration on dates other than coupon dates; Modified duration; Rupee duration; Price value of a basis point; Portfolio duration; Limitations of duration
Fixed Income Derivatives
Concept of fixed income derivatives; Mechanism of forwarding rate agreements; Interest rate swaps