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Fixed-Income Investing


Please note: This course is no longer available for purchase. However, if you are interested in this course please note CSI has recently introduced a course with similar concepts called Fixed Income Trading and Sales. Learn more.

Fixed-income markets rallied back into favour during recent dips in the equities markets. This course gives investment advisors a timely refresher on bond market basics, and outlines advanced techniques for analyzing and trading these instruments. Following an overview of the Canadian fixed-income market, the course covers yield measures, time value, duration and convexity, before proceeding on to fixed-income portfolio management, technical analysis trading tools and yield curve trading strategies.

Lesson One: Introduction to Fixed-Income Trading

Overview of Canadian Debt Markets:

  • Size of the Canadian Bond Market
  • Composition of the Bond Market
  • Domestic versus Foreign Ownership of Canadian Bonds
  • Bond Market Turnover

Risk Factors in the Fixed-Income Market:

  • Interest Rate Risk
  • Reinvestment Risk
  • Call Risk
  • Yield Curve Risk
  • Liquidity Risk
  • Volatility Risk
  • Default Risk
  • Exchange Rate Risk
  • Inflation Risk

Understanding Fixed-Income Returns:

  • Current Yield
  • Yield-To-Maturity
  • Yield-To-Call
  • Total Return

Lesson 2: How Bonds are Priced -- Factors that Affect the Price of a Bond

  • Maturity
  • Coupon
  • Credit Rating
  • Current Interest Rates
  • Understanding Duration
  • Understanding Convexity
  • Option Free Bonds

Lesson 3: Forecasting and Active Portfolio Management

Factors That Affect a Portfolio's Return:

  • Changes in the Level of Interest Rates
  • Changes in the Shape of the Yield Curve
  • Changes in Yield Spreads
  • Changes in the Yield for Any Given Bond in the Portfolio

Forecasting Interest Rates and the Shape of the Yield Curve:

  • Fundamental Analysis
  • Popular Interest Rate Publications
  • Interpreting Economic and Financial Market Data
  • Technical Analysis
  • Market Action Discounts Everything
  • Prices Move in Trends
  • History Repeats Itself
  • Idiosyncrasies of the Fixed-Income Market

Beating the Market:

  • Changing Weighting and/or Duration
  • Buying Off-The-Run Bonds
  • Trading the Yield Curve
  • Using Derivatives
Quiz Format Online
Question Format Multiple Choice
Questions Per Quiz 20
Passing Grade 60%*
Attempts Allowed Unlimited*
Enrolment Period 6 months

* IMPORTANT: There is no maximum to the number of quiz attempts permitted, but only the first passing grade (60% or over) will appear on official web transcript.

Regulatory Requirement/Professional Association What this Course Satisfies:
Chartered Strategic Wealth Professional, IIROC* 12-hour Compliance1 Not applicable
Chartered Strategic Wealth Professional, IIROC* 30-hour Professional Development1 3  hrs  cecap
FPSC, Advocis2 3  hrs
Subject 4 : 3  PDU
AIC/ICS/FSCO (Insurance) 3  hrs
ICM/ICBC Not applicable
CAAMP Not applicable

For details on the organizations above and other information on CE Credits, click here.