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.
- The pricing of bonds
- Measuring bond yields
- Bond price volatility
- Measurement of Duration
- Bond risk factors and the term structure of interest rates
- Treasury securities
- Corporate debt instruments
- Mortgage loans and securities
- Securitization and Asset Backed Securities
- Bond portfolio management
- Performance management of bond portfolios
- Interest rate derivatives
- Hedging strategies with bond portfolios
Methods of Instruction
Lecture and discussion.
Means of Assessment
|| 0% - 20%
|| 0% - 20%
||20% - 40%
||20% - 40%
Upon completion of the course the student will be able to:
- Explain how bond prices are determined in the market;
- Analyze the determinants of bond price volatility;
- Identify factors affecting bond yields and the term structure of interest rates;
- Analyze the various fixed income instruments other than bonds;
- Identify and evaluate the interest rate derivative securities;
- Formulate bond portfolio management strategies;
- Measure bond portfolio performance.
Course Guidelines for previous years are viewable by selecting the version desired. If you took this course and do not see a listing for the starting semester/year of the course, consider the previous version as the applicable version.
Below shows how this course and its credits transfer within the BC transfer system.
A course is considered university-transferable (UT) if it transfers to at least one of the five research universities in British Columbia: University of British Columbia; University of British Columbia-Okanagan; Simon Fraser University; University of Victoria; and the University of Northern British Columbia.
For more information on transfer visit the BC Transfer Guide and BCCAT websites.
If your course prerequisites indicate that you need an assessment, please see our Assessment page for more information.