Advanced Fixed-Income Investing Seminar - Overview
Measuring, Modelling, Managing and Optimising Interest Rate and Credit Risks in the New Environment
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The credit crisis, stock market downturn, and economic slowdown have resulted in a flight-to-quality that has pushed credit spreads to historic highs. At the same time, interest rates have fallen steeply—both in the short segment of the curve, where central banks have aggressively decreased prime rates, and in the long segment, with long-term sovereign bond prices being pushed up by increased demand from pension funds and other institutional investors. Low rates and high spreads offer investors extremely interesting opportunities, but they also pose serious challenges in terms of optimal passive and active exposure to interest rate and credit risks. |
Credit spreads are expected to narrow again, although it is highly uncertain when and how this narrowing will take place. The economic stimulus packages being pushed through in the major economies will lead to massive issues of sovereign bonds and eventually to increases in interest rates. At the same time, while the current credit crunch and economic slowdown have eased the recent inflation scare, the fundamental scarcity of natural resources and political pressure on central banks to relax inflation targets mean that for the medium to long term fears of inflation are still justified.
In this new environment, where fixed-income products have come back centre stage, there is a clear and pressing need for investors and asset managers to better understand the sophisticated techniques that can be used to optimise investment in fixed-income products and manage the associated risks. This seminar is designed to equip participants with the state-of-the-art techniques to manage interest rate and credit risks, to seize current opportunities in the fixed income market, and to hedge the risks associated with an instable credit and interest rate environment.
The seminar provides participants with advanced techniques to:
- Measure the impact of changes in interest rates and credit spreads on fixed-income portfolios;
- Model changes in interest rates and credit spreads;
- Hedge away the impact of such changes from both asset management and asset-liability (ALM) management standpoints;
- Optimise the exposure of bond portfolios to these changes in the context of fixed-income portfolio construction;
- Implement active strategies to benefit from expected changes in the interest rate and credit environments.
 | The Advanced Fixed-Income Investing Seminar is endorsed by IPE. [More about IPE] |
 | • Contents and outline
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