Folks,
Herewith I have given below the link for Batch VII - Day 5 (Evening) - Presentation made in Fast Track Webinar Series for IBBI Valuation Exam (SFA) on "FIXED INCOME SECURITIES"
FIXED INCOME SECURITIES (7 Marks)
- Types of fixed income securities: categories of fixed income securities i.e. debt and preferred stocks along with different rights attached to both categories
- Types of debt instruments: sovereign securities; state and local government bonds; semi-government/agency bonds; corporate debt securities; corporate bonds; money market securities in relation to investments (CP, CD, T-Bills); tax free securities; asset backed securities
- Terms used in fixed income securities: fixed income securities; bond indenture; issuer and holder; covenants; maturity; par value, coupon rate, clean price, dirty price; repurchase agreement; yield to maturity, yield to put, yield to call; forward rate and spot rate
- Bond duration: Macaulay duration, Modified duration, Effective duration, Key duration
- Credit rating of bonds: risk assessment and factors considered in assigning credit rating
- Embedded options for issuer and holder; call/put for repayment; cap and floor on coupon; conversion options; pre-payment options
- Derivative products: types of derivative products; calculation of swap rates; valuation of swaps; accruals on swaps
- Related Fixed Income Money Market and Derivatives Association of India circulars for Non-SLR bonds, Traded bonds, Non-traded bonds-rated, Non-traded bonds-not rated, Floating rate bonds, Staggered redemption bonds, Perpetual bonds, Deep discount bonds, Bonds with call/put options, Tax free bonds, Security receipts/Pass through certificates
- This chapter in IBBI Valuation exam carries 6 to 8 marks | FIMMDA – FAQ on Fixed Income Securities | Master Circular No. DBR No BP.BC.6 /21.04.141/2015-16, dated 1st July, 2015, FIMMDA jointly with PDAI publishes – 29/3/2019 & 31/3/2020 | Bond, Duration, Types of Bond, Bond Holder, Bond Issuer | YTM, YTC, YTP | Credit Rating, Interest Rate Derivatives
- After investing substantial amount of time and Himalayan size of Efforts, Research & Pain; this material is brought out.
- Your acknowledgement (with your name, location & contact no) in this blog by few words will be an encouragement for this Hard Work
Dr GKR Worksheet Link
https://drive.google.com/file/d/1RQXNGgv2IKWHqUwoFOenCWRhfRJn0Ojc/view?usp=sharing
Kindly post your comments, suggestions, queries & review of the webinar session below this post. Happy Reading | Please contact Dr S Dhanapal (96770 22712) for being part of FT7 WhatsApp group.
Dr GKR
It's extraordinary
ReplyDeleteAnd got confidence of FS valuation
Explaining/ tips how to use Excel for yield calculation and other such technique is handy for the students.
ReplyDeleteWonderful session, tremendous effort, thank you so much for such session.
ReplyDeleteExcellent Session
ReplyDeleteWonderful session and it is my pleasure to attend your fast track sessions.
ReplyDeleteA thorough session. Guidelines given at the end about how to prepare for the exam are also of great help. Thank you sir for taking lot of efforts for the complete course. The 50 hrs syllabus you covered in just 6 hrs of valuable inputs. Thanks once again.
ReplyDeleteGreat session and definitely help us to understand the actual concept. Thank you for your great efforts
ReplyDeleteSuperb session on FIS Sir. Thank you so much Dr GKR Sir for your valuable time and knowledge sharing for two hours,sacrificing your sunday.
ReplyDeleteWonderful and superb session and for invluable guidelines for cracking exam. regards
ReplyDeleteWonderful and superb session. Thank you very much for invaluable guidelines for cracking exam. regards
ReplyDeleteVery good session.Got lot of inputs in short span of time
ReplyDeleteVery nice session sir.
ReplyDeleteThanks a ton Dr.GKR, for all the help you are rendering to the exam aspirants. I am sure your sessions give a lot of confidence to face the exam
ReplyDeleteThank you for your kind efforts for preparation of exams.
ReplyDeleteThanks for the great session Sir.
ReplyDeleteAnswers for the questions you left for us to exercise:
Q24
Bond A
YTM=13%
Duration=5.79 (but using the Duration function in excel it is coming as 5.684)
Modified duration=5.13 (but using Duration as calculated using excel function it is coming as 5.036)
Bond B
YTM=11%
Duration=5.60 (but using the Duration function in excel it is coming as 5.64)
Modified duration=5.06 (but using Duration as calculated using excel function it is coming as 5.10)
Case study based
Q37: intrinsic (fair) value= 1034
Q38: current yield=14.62%
Q39:a)Yes, because the current market price of the bond is less than its fair value
Sir kindly let me know if the above answers are correct.
DeleteAlso Sir, in case where Duration using excel function and using formula of Sum(% of PV*year) comes different, then which ans to consider.
Thanks in Advance