Fixed Income Money Market

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?

  • Students / Teachers
  • Debt Market Dealers
  • Employees of BPO/IT Companies
  • Anybody having interest in the Fixed Income Market

Test details

Duration : 120 minutes
No. of questions : 60
Maximum marks : 100, Passing marks : 50 (50%); There is negative marking for incorrect answers.
Certificate Validity : For successful candidates, certificates are valid for 5 years from the test date.

NSE's Examination Fees

Rs. 1,500/- (Rupees One Thousand Five Hundred only).

COURSE OUTLINE

DEBT INSTRUMENTS
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.

CORPORATE DEBT: BONDS
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.

REPOS
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 & 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 & 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 & TERM STRUCTURE OF INTEREST RATES
Yield Curve; Bootstrapping; Alternate methodologies to estimate the yield curve; Theories of the term structure of interest rates.

DURATION
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 forward rate agreements; Interest rate swaps.