Fixed Income Securities
Overview
This unit teaches students to analyse fixed income markets, securities and develop portfolio management strategies. Students will learn techniques to value a variety of fixed income securities and analyse risk and performance. Additionally, students will develop an understanding of interest rate, credit risks, valuing bonds with options and structured investment strategies. The ethical issues surrounding investing in distressed securities and managing returns and risk in fixed income portfolios will be discussed. Financial technology will be used to evaluate the performance of fixed income portfolios.
Requisites
Rule
FIN60003 Business Modelling And Analysis
AND
50 Credit Points
27-October-2024
02-November-2025
Learning outcomes
Students who successfully complete this unit will be able to:
- Critically analyse the characteristics of fixed income securities, markets, and valuation techniques.
- Apply advanced knowledge and quantitative skills in risk analysis and valuation of fixed income portfolios.
- Demonstrate advanced knowledge of the term structure of interest rates and evaluate the trading behaviour of market participants.
- Critically reflect on technological issues relating to fixed income portfolio formation and investment decision-making process.
- Work collaboratively in groups
Teaching methods
Hawthorn
| Type | Hours per week | Number of weeks | Total (number of hours) |
|---|---|---|---|
| On-campus Class | 2.00 | 12 weeks | 24 |
| Online Lecture | 1.00 | 12 weeks | 12 |
| Unspecified Activities Various | 9.50 | 12 weeks | 114 |
| TOTAL | 150 |
Assessment
| Type | Task | Weighting | ULO's |
|---|---|---|---|
| Assessment | Individual | 30 - 50% | 1,2,3 |
| Assignment | Group | 40 - 50% | 1,2,3,4,5 |
| Online Quizzes | Individual | 10 - 20% | 1,2,3 |
Content
- Types of fixed income securities and their characteristics
- Fixed income markets
- Fixed income valuation and return analysis
- Fixed income portfolio benchmarks
- Term structure determination and yield spreads
- Interest rate risk and Credit risk analysis
- Valuing bonds and embedded options
- Structured products
- Fixed income portfolio management strategies
- Distressed securities and Bankruptcies
- Ethics in investing in fixed income securities
Study resources
Reading materials
A list of reading materials and/or required textbooks will be available in the Unit Outline on Canvas.