Debt Instruments

Course Overview

This comprehensive course on “High-Yield Bonds, Subordinated Debt, and Leveraged Loans” is designed to equip participants with a deep understanding of these complex financial instruments. The course covers the fundamentals, market dynamics, risks, and advanced topics related to high-yield bonds, subordinated debt, and leveraged loans. Participants will gain insights into the characteristics, trading mechanisms, and regulatory environment of these instruments, as well as practical strategies for risk management and investment analysis.

The course is structured into four key sections:

1. Understanding and Navigating High-Yield Bonds: This section provides an in-depth understanding of high-yield bonds, including their ratings, market structure, growth trends, issuers, trading mechanisms, risks, and returns.
2. Deep Dive into Subordinated Debt: Participants will explore the fundamentals, types, risks, benefits, and market practices related to subordinated debt.
3. Leveraged Loans Explored: This section delves into the characteristics, structures, market trends, and risks of leveraged loans.
4. Advanced Topics in Debt Instruments: The final section covers high-yield bond derivatives, collateralized loan obligations (CLOs), and the regulatory environment governing these instruments.

Course Objectives

By the end of this course, participants will be able to:

1. Understand the Fundamentals:
   • Comprehend the basic concepts, definitions, and characteristics of high-yield bonds, subordinated debt, and leveraged loans.
   • Identify the key players and market dynamics influencing these financial instruments.
2. Analyze Market Structures and Trends:
   • Evaluate the structure, size, and growth trends of the high-yield bond market.
   • Understand the different types and forms of subordinated debt and leveraged loans, and their respective market practices.
3. Assess Risks and Returns:
   • Analyze the risks associated with high-yield bonds, subordinated debt, and leveraged loans, including default, credit, market, and liquidity risks.
   • Develop strategies for managing and mitigating these risks through diversification, hedging, and other techniques.
4. Perform Investment Analysis:
   • Evaluate the returns and performance of high-yield bonds relative to other asset classes.
   • Conduct thorough investment analysis and make informed investment decisions based on market trends and risk assessments.
5. Navigate Advanced Topics:
   • Gain insights into high-yield bond derivatives, such as credit default swaps (CDS), and their role in risk management.
   • Understand the structure and functioning of collateralized loan obligations (CLOs) and their associated risks and returns.
6. Comply with Regulatory Frameworks:
   • Familiarize with the regulatory environment governing high-yield bonds, subordinated debt, and leveraged loans.
   • Understand the impact of regulations on market practices and investor behavior.

By achieving these objectives, participants will be well-equipped to navigate the complexities of high-yield bonds, subordinated debt, and leveraged loans, and make informed decisions in their professional roles.