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A Trader’s Guide to Convertible Bonds - Sales


Objective: focusing on the sales side of CBs, the first of two parts is aimed at consolidating fundamental aspects of Convertible Bonds (CBs). There after the seminar focuses on the valuation and hedging of CBs, and the design of CB structures as may arise in sales and structuring. 

Will learn

·         Consolidation of CB basics

·         Bond Valuation and Risk Management

·         Basic Options theory (Valuation and Risk Management)

·         Hybrid Options theory: Valuation and Risk Management of the CB

·         Engineered CB Structures of the future 

Audience: market professionals with at least 1-year experience (some understanding of markets/products helpful)  

·         Sales, structuring, support

·        Risk Management

Table of Contents

  1. Introduction to CBs and structuring basics: CBs the “big picture”, Risk/Return Profile Management, Economic Need, Idiosyncrasies, CBs vs. Structuring

  2. The Basics: CB Markets, EuroMarkets, Domestic Markets, Market Size, Definitions by Example, Why are CB’s hard to Value?  “coupled” stochastic (uncertain) elements

  3. Common CB Structures and Policy Considerations: The Debt/Equity Spectrum (how to make it more like equity or debt), Branded CB Structures (PERCS, Callable Convertible Preferred Stocks, DECs, LYONs, TOPRs, YEELDs, ... ad infinitum), Complex CB Structures, Call policy, Taxation considerations, Investor’s perspective, Issuer’s perspective.

  4. Valuation of CBs - in 3 parts: a comprehensive examination of pricing and position risk of CBs with special attention to the bond component and hybrid implications.

  5. Extensive Workshops: detailed examination of several current CB issues illustrating structuring considerations, trade idea considerations (from issuer and investor perspectives), directional and arbitrage implications, and “before and after” comparisons


455 Pages of comprehensive and extensively illustrated Handout Notes (see samples here)

Plus copies of relevant TG2 Books/e-Books

Note: Seminars can be tailored to your trading, risk, client, and systems needs.  Submit your needs, and/or "cut/paste" from other Seminars (see entire "standard" list HERE)

    Get a Syllabus in more detail

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Last modified: July 25, 2011