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Registration for the Fall 2019 semester begins June 25.  Watch your email for more details.

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Fixed Income Markets and Management

Course Code: FINC 4420
Faculty: Commerce & Business Administration
Department: Finance
Credits: 3.0
Semester: 15 Weeks X 4 Hours per Week = 60 Hours
Learning Format: Lecture
Typically Offered: TBD. Contact Department Chair for more info.
course overview

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

Methods of Instruction

Lecture and discussion.

Means of Assessment

Assignments   0% - 20%
Term Tests   0% - 20%
Midterm Exam          20% - 40%
Final Exam 20% - 40%
Total          100%

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.

course prerequisites

Econ 2408 and Finc 3390

curriculum guidelines

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.

course schedule and availability
course transferability

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.

assessments

If your course prerequisites indicate that you need an assessment, please see our Assessment page for more information.