- Confirm understanding of yield curves and their role in financial markets
- Understand the key terminology associated with fixed income and yield curves
- Understand the impact of negative yields on financial markets participants
- Understand why inverted yield curves often predict recessions.
- Know the strategies used by investors to take advantage of their view on future interest rates and yield curve shapes.
Who is the course for
The programme is aimed at anyone wanting to understand the signals that the fixed income market is giving and how fund managers and hedge funds are responding to the unusual events in the fixed income markets.
Those who would benefit will work in risk and fixed income at banks, in operational roles at custodians, be involved in marketing or operations at asset managers.
Introduction and programme overview
Yield Curves recapped
- Data aspects of compiling a yield curve
- Benchmarks and coupons
- Liquidity, Duration, Convexity
- Par, Zero and Forward Curves
The economic stories told by Yield Curves
- Yield Curve shapes, steepening and flattening and why
- Yield Curve Arbitrages
- Predictions embedded in yield curves, do they come true?
- Yield Curve shapes that shouldn’t happen, but do, and how to profit from them
Trading with and against the yield curve
- ‘betting’ the implied forward curve comes true
- And betting that it doesn’t
- Can the yield curve predict a recession?
- What happens to the Yield Curve once we’re in a recession?
Summary and Close
Peter Leahy (Intuition)
Peter has developed a reputation for providing the highest quality in consultancy and training for the financial services industry. Peter specialises in the fixed income and fixed income related capital markets, including derivatives, repo and swaps.
Peter was, until 1995, a Senior Vice President at a Bear Stearns in London where he was responsible for developing and selling Asset Backed and Derivatives products. He has worked in the financial markets for more than fifteen years and advises various institutions at the highest level on matters concerning the international capital markets. His extensive experience includes senior fixed income markets positions at J.P. Morgan, Kleinwort Benson and Bear Stearns.
Peter has been contracted on numerous occasions to act as a discussion facilitator for internal discussions and ‘town hall’ meetings within major Investment Banks.
Peter also has also gained considerable experience on the documentation of mortgages and fixed income products, as a teacher and an expert witness, including a recent high profile bond sales professional negligence cases involving CDOs and defaulted bonds.
Peter has trained courses in about twenty countries on topics including Swaps, Credit Derivatives, Securitisation and Structured Products. Peter has presented many public training programmes on Credit Derivatives and on Securitisation. He is also a visiting lecturer at the City University Business School (London).
Banks that have used Peter’s services include HSBC, CSFB, Citigroup, Merrill Lynch, JP Morgan Chase and the Bank of England.
Peter has a wide and very positive renown in the areas of Financial Markets training, product and investment consultancy as well as Expert Witness / Dispute Resolution