The Importance of Interest Rates and Fixed Income
Interest Rate Types, Corporate Bond Features, and Mortgage-Backed Securities
About This Course
Course Information
This course looking at the importance of interest rates and fixed income, covering types of interest rates, term structure, bonds and mortgages.
Certificate on Completion
This course is made up of videos, questions and additional reading materials, and accounts for 6 units of CPD. One unit is the equivalent of one hour of learning.
Course Sections
This course is made up of the following sections:
- Types of interest rates (video)
- Types of interest rates (quiz)
- Term structures (video)
- Term structures (quiz)
- Bonds and risk (video)
- Bonds and risk (quiz)
- Mortgages (video)
- Mortgages (quiz)
- Mortgage-back securities (video)
- Mortgage-back securities (quiz)
What You Will Learn
- Distinguish between treasury rates, LIBOR, SOFR, repo rates, and the federal funds rate as benchmark interest rates
- Explain how overnight indexed swaps (OIS) are used to derive risk-free rates for derivatives pricing
- Describe the features of corporate bonds including indentures, covenants, credit spreads, and bond retirement methods
- Compare fixed-rate and adjustable-rate mortgages and explain how monthly payments are computed
- Identify how mortgages are pooled and securitised into mortgage-backed securities (MBS) through government-sponsored enterprises
- Evaluate prepayment risk and its effect on principal-only (PO) and interest-only (IO) strips
Who This Course Is For
- Finance professionals who need to understand fixed income products and interest rate benchmarks
- Risk analysts working with bond portfolios or structured products
- Accountants involved in the reporting or valuation of debt instruments and securitised assets
Prerequisites
- Basic understanding of how bonds work, including coupon payments and maturity
- Familiarity with the concept of interest rates and present value calculations
Frequently Asked Questions
Course Details
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