Why You Should Take This Course
We’ll be blunt: bond analysis is usually taught horribly. Our course completely demystifies fixed income analysis to give people from the outside a clear window to the inside.
If you’ve ever tried to learn about bonds – either through a textbook, a university class, or CFA training materials, you’ve most likely discovered that it quickly gets painful. We’ll be blunt: bond analysis is usually taught horribly. Beyond super-basic concepts of bond pricing and interest rate valuation, concepts like convexity, modified duration and forward curves are introduced with no connection to how they relate to real-world investment strategies.
We made this course with one overall objective in mind: to make something truly different than what’s out there now. Something that completely demystifies fixed income analysis and gives people a clear window to the inside.
We feel certain we’ve accomplished this. We take you step-by-step through the core concepts you need, and completely cut out concepts you’ll never use. The result is an intuitive look at the use of bonds in fixed income research, sales and trading and investment banking.
What You Will Learn
- Fixed income market overview
- Bond math basics
- Yield calculations and conventions
- Money Market math
- Interest rate risk
- Real world bond pricing nuances
- Callable bonds
- The yield curve
- Nominal spread & Z-spread
- Spot rates
- Realized compound yield
- Holding period yield
- Forward rates
- Credit analysis
- Debt Capital Markets
PLUS: We’ll show you how market practitioners use Bloomberg on the job.
Wall Street Prep’s Crash Course in Bonds is used at top financial institutions and business schools.
Interpreting the Bloomberg YAS screen
Yield curve shape at various points in the business cycle
Exam and Certification
There is a 3-hour examination at the end of the course. You are eligible to take the exam for 24 months from the date you registered for the course. Those who complete the exam and score above 80% will receive a Certification in Bond Analysis. The exam is challenging and covers the most difficult concepts covered in the program.
Used on the Street
This is the same comprehensive course our corporate clients use to prepare their analysts and associates.
1.5x, 2x video speed
Save loads of time by bumping up playback speed to breeze through lessons at your own pace.
Taught by bankers
Our instructors are former I-bankers who give lessons real-world context by connecting it to their experience on the desk.
Have a question on course content? Communicate directly with instructors by asking questions throughout the course.
Full Course Agenda
- Chapter 1: Fixed income market overview
- What is fixed income?
- Size of the bond market
- Bond market geographic breakdown
- Chaper 2: Bond Basics
- Basic bond terms
- Basic bond math
- Using Excel’s RATE() function
- Reinvestment assumption of YTM
- YTM vs. current vs. nominal yield
- Bond price as present value of a bond’s cash flows
- Simple bond price exercise
- More bond terms
- Bond issuance costs
- The price/yield relationship
- Primary vs. secondary bond market
- The bid/ask spread
- Chapter 3: Yield calculations and conventions
- Coupon frequency and bond equivalent yield (BEY)
- BEY vs Effective annual yield (EAY)
- Converting from BEY to EAY
- Compounding conventions of 0-coupon bonds
- Chapter 4: The money market math
- Money market yield
- Money market math exercises
- Discount basis
- Converting interest rates
- Money market instruments
- Chapter 5: Real world bond pricing nuances
- Settlement date
- Bond pricing between coupons
- Fractional periods
- Day count convention
- Dirty price
- Dirty price exercise
- Clean vs dirty price
- Useful Excel functions
- Bond pricing exercise, part 1
- Bond pricing exercise, part 2
- Bond pricing exercise, part 3
- Interpreting the Bloomberg bond screen
- Chapter 6: Realized compound yield and holding period yield
- Realized compound yield and holding period yield
- RCY / HPY exercise, part 1
- RCY / HPY exercise, part 2
- RCY / HPY exercise, part 3
- Chapter 7: Interest rate risk
- Intro to interest rate risk
- Hedging interest rate risk
- Estimating the price impact of rate changes
- Modified duration & dollar duration
- Modified duration exercise
- Useful Excel functions for interest rate risk
- Modified duration exercise, part 2
- Modified duration exercise, part 3
- Convexity exercise
- How convexity is applied in practice
- Duration/convexity between coupons
- Duration/convexity between coupons exercise
- Interpreting the Bloomberg YAS screen
- Chapter 8: Callable bonds
- Make whole call
- Make whole call, Apple example
- Callable bonds
- Sinking fund redemption
- Yield to call and yield to worst
- Chapter 9: The yield curve
- Yield curve intro
- Term structure theory
- Monetary policy intro
- Federal funds and the discount rate
- Open market operations
- Other central bank tools
- Summary of forces affecting the yield curve
- Yield curve shape at various points in the business cycle
- Chapter 10: Spot rates
- Spot rates intro
- Spot rates role in bond valuation
- Full vs YTM bond valuation approaches
- Bootstrapping the spot curve, part 1
- Bootstrapping the spot curve, part
- Chapter 11: Nominal spread, Z-spread and OAS
- Yield spreads and the z-spread
- Option adjusted spread
- Chapter 12: Forward rates
- Forward rates
- Forward rate exercise, part 1
- Forward rate exercise, part 2
- Forward rate exercise, part 3
- Trading strategy using forward rates
- Chapter 13: Credit analysis
- Credit risk
- Credit analysis
- Navigating Clear Channel’s bond agreement
- Chapter 14: Debt capital markets and the debt origination process
- Debt origination primer
Crash Course in Bonds Reviews (8)
I just switched back to capital markets after spending few years in corporate finance and wanted to refresh my fixed income knowledge. I found this course to be very useful, and I would certainly sign up for any more advanced fixed income courses you might offer!
I enrolled in Crash Course in Bonds is to help with the fixed income section of the CFA Level III exam.
This Bonds course has a good mixture of briefings/theory along with hands-on calcs/Excel. The pace is good and the materials and Excel models are really good … I see myself signing up for the Premium Package once I get past the CFA Level III.
(I also attended a Wall Street Prep seminar about 5 years ago in NYC – it was Oil and Gas modeling. I enjoyed the hands on course and I still have the materials!)
I bought this course to get a comprehensive refresher on FIC topics. I’m three years into my career as a Legal Entity Analyst at a bulge bracket bank, and recently accepted a job within the US Rates Risk and P&L space.
The course has been great. I’d recommend it to any user who wants to refresh on FIC topics. The course is helping me beat the learning curve as I transition into a new role at my firm.
It is very well structured, nice examples, inspiring presentation, both friendly and professional presentation.
The Bonds course is a great foundation and has helped me gain more confidence in my knowledge as I move through the ranks of portfolio management. Bond courses are also impossible to find. Thank you for providing one!
I enjoyed the videos provided and the supplementary material (course book and excel workbook). I think the course followed the right cadence, using each subject to build into another as you progressed. It was a great refresher and also helped to provide an understanding of how this material is applied.
My motivation for choosing this course was to refresh my knowledge of the fixed income market. I have been investing for over 20 years but my focus has been mainly on equities and equity capital markets. I have studied fixed income/credit through the CFA program but never worked in this sector so my knowledge has remained largely theoretical.
I liked the short, focused modules that allow me the follow material in my own order and review as/when I need to. The material is quite thorough and well put together.
The Wall Street Prep Quicklesson Series
7 Free Financial Modeling Lessons
Get instant access to video lessons taught by experienced investment bankers. Learn financial statement modeling, DCF, M&A, LBO, Comps and Excel shortcuts.