Curriculum Guideline

Fixed Income Markets and Management

Effective Date:
Course
Course Code
FINC 4420
Descriptive
Fixed Income Markets and Management
Department
Finance
Faculty
Commerce & Business Administration
Credits
3.00
Start Date
End Term
Not Specified
PLAR
No
Semester Length
15 Weeks X 4 Hours per Week = 60 Hours
Max Class Size
35
Contact Hours
Lecture: 3 Hours Discussion: 1 Hour
Method Of Instruction
Lecture
Methods Of Instruction

Lecture and discussion.

Course Description
Fixed Income Markets and Management analyze various fixed income instruments and derivatives of those investments. The course will emphasize traditional bond and term structure concepts crucial to understanding the functioning of these markets. The risk profiles of the instruments will be examined and used in formulating fixed income investment portfolios appropriate for different objectives and strategies. Performance measurement techniques will show how to evaluate the success of any strategy.
Course Content
  1. The pricing of bonds
  2. Measuring bond yields
  3. Bond price volatility
  4. Measurement of Duration
  5. Bond risk factors and the term structure of interest rates
  6. Treasury securities
  7. Corporate debt instruments
  8. Mortgage loans and securities
  9. Securitization and Asset Backed Securities
  10. Bond portfolio management
  11. Performance management of bond portfolios
  12. Interest rate derivatives
  13. Hedging strategies with bond portfolios
Learning Outcomes

Upon completion of the course the student will be able to: 

  1. Explain how bond prices are determined in the market;
  2. Analyze the determinants of bond price volatility;
  3. Identify factors affecting bond yields and the term structure of interest rates;
  4. Analyze the various fixed income instruments other than bonds;
  5. Identify and evaluate the interest rate derivative securities;
  6. Formulate bond portfolio management strategies;
  7. Measure bond portfolio performance.
Means of Assessment
Assignments   0% - 20%
Term Tests   0% - 20%
Midterm Exam          20% - 40%
Final Exam 20% - 40%
Total          100%
Textbook Materials

Textbooks and Materials to be Purchased by Students

 

Fabozzi, Frank. Bond Markets, Analysis, and Strategies. Latest Edition. Pearson Prentice Hall

Prerequisites

Econ 2408 and Finc 3390