BFF5541 · Fixed income investments

Overview

This unit covers the wide range of fixed income products and fixed income portfolio management strategies. Starting with a review of the basics of fixed income analytics such as bond pricing, yield curve, spot rates, forward rates and risk measures, you will be introduced to the extensive array of fixed income instruments including bonds with embedded options and securitized products. You will learn key interest rate models, credit risk models and bond valuation frameworks, as well as strategies of managing bond portfolios.

Offerings

Assessment

The Handbook lists an examination for this unit.

Assessment details may change. Please refer to the assessment information in Moodle closer to the start of the teaching period.

Requisites

The Handbook lists no prerequisite, corequisite or prohibition for this unit.

Learning outcomes

1. have an advanced understanding of different types of fixed income securities and markets
2. develop qualitative and quantitative skills necessary for analysing and valuing fixed income securities
3. have a strong understanding of key interest rate, credit risk and fixed income valuation models, including the implementation and limitations of each model
4. apply critical thinking, problem solving and presentation skills to deal with fixed income securities and demonstrate in an individual summative assessment task an understand of a broad range of applications for both investors and issuers, including income generation, principal preservation, and asset-liability management.

Workload

Minimum total expected workload to achieve the learning outcomes for this unit is 144 hours per semester typically comprising a mixture of scheduled learning activities and independent study. Independent study may include associated readings, assessment and preparation for scheduled activities. You are expected to complete all pre-class activities prior to your scheduled class, and post-class activities should be completed after your scheduled class. Learning activities may include a combination of teacher directed, peer directed and online engagement activities.

Student experience, not official rules. Nothing here changes what the Handbook says.