U.S. Bond Investing Basics

Go to Course: https://www.coursera.org/learn/fixed-income

Introduction

**Review and Recommendation: U.S. Bond Investing Basics on Coursera** For anyone seeking to build a solid foundation in fixed-income investing, the “U.S. Bond Investing Basics” course available on Coursera stands out as a comprehensive and insightful option. Whether you are an aspiring investor, a finance professional aiming to sharpen your skill set, or simply a curious learner interested in the world of bonds, this course offers essential knowledge and practical tools that are invaluable in today’s investment landscape. **Course Overview: A Gateway to Fixed Income Investing** The course is meticulously structured to help you navigate the complex realm of U.S.-dollar denominated corporate and municipal debt. You will learn to distinguish between various types of bonds, delve into investment risks, and grasp the underlying market mechanics. With a focus on actionable skills, the program ensures that by the end of the course, participants can analyze different types of corporate and municipal bonds confidently. **Syllabus Breakdown: What You'll Learn** 1. **Introduction to Municipal Bonds**: This module lays the groundwork by familiarizing you with the distinct features of municipal debt. You will learn how to identify various types of municipal bonds available on online trading platforms and understand their trading performance in the secondary market. The course will guide you through essential analyses like governance and default risk, alongside calculating debt service coverage ratios. This foundational knowledge is critical for anyone looking to invest in municipal bonds. 2. **Municipal Bond Analysis & Tax Considerations**: Taxes play a crucial role in fixed-income investments. This section equips you with the knowledge to understand how taxes affect different types of fixed-income securities, from in-state and out-of-state municipal bonds to corporate bonds. The module covers recent tax law changes, capital gains considerations, and compares yields across tax-exempt and taxable debt. Furthermore, you’ll learn to access detailed municipal bond reports and valuable resources like the MSRB’s EMMA for documentation and data. 3. **Introduction to U.S. Corporate Bonds**: This module dives deeper into corporate bonds, shedding light on the implications of a company failing to meet its debt obligations and the recourse available to bondholders. You will gain insights into conducting comprehensive analyses on various risks associated with corporate bonds, such as credit, market, liquidity, operational, and political risks. Understanding interest rate changes and central bank policies' effects on corporate bond prices completes this robust overview of corporate bond investing. **Course Format and Accessibility** The course is presented through a series of video lectures, reading materials, and assessments designed to reinforce learning. Coursera offers a user-friendly platform that allows for flexible learning. You can progress at your own pace, making it suitable for both full-time professionals and students. Additionally, the course is accessible on multiple devices, enabling you to learn on the go. **Recommendation: Who Should Enroll?** I highly recommend the “U.S. Bond Investing Basics” course for those looking to develop a comprehensive understanding of bond investing. It’s particularly beneficial for: - Beginner investors who want to enter the fixed-income market with a structured approach. - Finance students seeking to complement their academic knowledge with practical insights into bond investing. - Professionals in the finance sector aiming to gain specialization in fixed-income securities for career growth. Overall, this course delivers a blend of theory and practical knowledge, making it an excellent investment in your education. Whether you aim to manage your own bond investments, work in financial services, or expand your financial literacy, this course serves as a critical stepping stone towards achieving your goals. Don’t miss out on the opportunity to enhance your understanding of U.S. bond investing—enroll today!

Syllabus

Introduction to Municipal Bonds

In this module, you will learn to: differentiate different types of municipal debt-Identify different features of municipal bonds available to purchase and sell on an online trading platform; track the trading performance of municipal bonds in the secondary market; grasp the market mechanics underlying municipal bond issuance; conduct fundamental, governance, and default risk analyses and calculate debt service coverage ratios.

Determine how taxes are applied to different types of fixed income issuance, including in-state and out- of-state municipal bond purchases, Build America Bonds (BABs), corporate bonds and U.S. Treasuries, as well as examine recent tax law changes, and how taxes apply to capital gains and losses. Learn how to compare the yields of tax-exempt and taxable debt issuance, as well as explore how taxes are applied to different types of municipal bonds. Learn how to access detailed municipal bond reports through an online trading platform, as well as consult resources such as the MSRB's EMMA, which houses critical municipal bond documentation and data, including Official Statements and Continuing Disclosures.

Learn what it means for a company to fail to honor its debt obligations and what this portends for its creditors, define the recourse corporate bondholders have in the wake of a company's default or bankruptcy filing, as well as describe certain default risk mitigation methods.Explore how Investors of corporate bonds may commit a tremendous amount of time to fundamental analysis to inform their investment decisions – conducting analyses on credit, market, liquidity, operational, and political risks, among countless others – when considering the potential for default. Examine how interest rate changes and central bank monetary policies can affect corporate bond prices, as well as influence levels of supply and demand in the market. Identify the steps involved in the creation of a corporate bond issuance, as well as examine some of the regulatory rules that govern this process. Examine the differences between yields and prices of corporate bonds trading in the secondary market, as well as explore the nature of basis point spreads.