Private Investors' Guide to Bond Investing
- Finance & Investment
2 days
Weekdays (9am - 5pm)
Singapore Management University
Who Should Attend
- Individuals aspiring to embark on a professional career in investment management relating to bonds
- Professionals and financial market investors looking to enhance their understanding of the workings of bond markets in practice
Overview
Bonds form an integral part of investors' portfolios but are often not well-understood, given their complexity in terms of structures and valuation. This course focuses on providing private bond investors with a holistic real-world understanding of bonds, how they can be used to strengthen your portfolio’s risk return profile.
Dates: [To be determined]
Learning Objectives
- Understanding what moves bond prices i.e. the COLT Framework of Credit Ratings, Optionality, Liquidity and Tenor
- Know the key risks and measurement of these risks associated with bond investments
- Learn about the finer details of perpetual bonds with a focus on CoCos
- Build a well diversified bond portfolio with (or without) leverage
- Analyse new bond issues and make informed investment decisions
Topic/Structure
A Practical Introduction to Bonds
- Basic Bond Structure and Payoffs
- Macroeconomic Factors That Impact Bond Markets
- Lifecycle of a Bond
Bond Valuation & Risk
- Z-Spread and Duration
- COLT Framework: Credit, Optionality, Liquidity & Tenor
- Credit Ratings - Importance and Issues
- High Yield Bond Covenants
- Key Risks - Interest Rate Risk, Credit Risk, Reinvestment Risk and Liquidity Risk
- Practical Tips on Getting Return for Risk
Perpetual Bonds
- Corporate Perpetuals
- Contingent Convertibles (CoCos)
- Common Structures/ Features
- Valuation
- Covenants
- Key Risks
Bond Portfolio Optimisation
- Diversification and Home Bias
- Buy and Hold vs. Active Management
- Use of Leverage & Its Impact on Return (and Risk)
New Bond Issues
- Understanding the New Bond Issue Process & Timelines
- How to Analyse New Issues
- Things to Ask Your Banker Before Buying New Issues
Using Excel to Understand Bond Calculations
- Calculations of Accrued Interest, Clean & Dirty Price
- Yield to Maturity, Price from Yield & Vice Versa
- Portfolio Volatility & DV01 Risk Ladder
Assessment
As part of the requirement for SkillsFuture Singapore, there will be an assessment conducted at the end of the course. The mode of assessment, which is up to the trainer’s discretion, may be an online quiz, a presentation or based on classroom exercises.
Participants are required to attain a minimum of 75% attendance and pass the associated assessment in order to receive a digital Certificate of Completion issued by Singapore Management University.
Calculate Programme Fee
Fee Table
| COMPANY-SPONSORED | |||
|
PARTICIPANT PROFILE |
SELF-SPONSORED |
SME |
NON-SME |
|
Singapore Citizen < 40 years old Permanent Resident LTVP+
|
$654 (After SSG Funding 70%) |
$254 (After SSG Funding 70% |
$654 (After SSG Funding 70%) |
|
Singapore Citizen ≥ 40 years old |
$254 (After SSG Funding 70% |
$254 (After SSG Funding 70% |
$254 (After SSG Funding 70% |
|
International Participant |
$2,180 (No Funding) |
$2,180 (No Funding) |
$2,180 (No Funding) |
All prices include 9% GST
Please note that the programme fees are subject to change without prior notice.
Post Secondary Education Account (PSEA)
PSEA can be utilised for subsidised programmes eligible for SkillsFuture Credit support. Click here to find out more.
Self Sponsored
SkillsFuture Credit
Singapore Citizens aged 25 and above may use their SkillsFuture Credits to pay for the course fees. The credits may be used on top of existing course fee funding.
This is only applicable to self-sponsored participants. Application to utilise SkillsFuture Credits can be submitted when making payment for the course via the SMU Academy TMS Portal, and can only be made within 60 days of course start date.
Please click here for more information on the SkillsFuture Credit. For help in submitting an SFC claim, you may wish to refer to our step-by-step guide on claiming SkillsFuture Credits (Individual).Workfare Skills Support Scheme
From 1 July 2023, the Workfare Skills Support (WSS) scheme has been enhanced. Please click here for more details.
Company Sponsored
Enhanced Training Support for SMEs (ETSS)
- Organisation must be registered or incorporated in Singapore
- Employment size of not more than 200 or with annual sales turnover of not more than $100 million
- Trainees must be hired in accordance with the Employment Act and fully sponsored by their employers for the course
- Trainees must be Singapore Citizens or Singapore Permanent Residents
- Trainees must not be a full-time national serviceman
- Trainees are eligible for ETSS funding only if their company's SME status is approved prior to the course commencement date. To verify your SME's status, please click here.
Please click here for more information on ETSS.
Absentee Payroll
Companies who sponsor their employees for the course may apply for Absentee Payroll here. For more information, please refer to:
AP Guide (Non-SME Companies)
Declaration Guide (SME Companies)
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