Fixed Income and Debt Markets
Overview
The unit provides students with knowledge of fixed income and debt markets, securities and the relationship to interest rates, especially for corporations and governments. It will cover the quantitative techniques in valuing a variety of fixed income securities, including bonds with options and structured products. There will be analysing of credit and interest risk and performance of fixed income products, especially in light of current and historical economic uncertainties. The ethical issues surrounding investing in fixed income securities will be discussed and applications of financial technology in these markets will be explored.
Requisites
02-November-2025
31-May-2026
07-June-2026
01-November-2026
07-February-2027
Learning outcomes
Students who successfully complete this unit will be able to:
- Analyse the characteristics of fixed income securities, debt markets, and valuation techniques
- Identify the risks associated with fixed income securities and recommend measures to reduce these risks
- Identify and explain the causes and consequences of debt distress in light of economic and financial crises
- Discuss ethical and technological issues relating to fixed income securities and the investment decision making process and recommend solutions to address the issues
- Evaluate the applications of financial technology in fixed income markets
- Work effectively in a team environment
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 Independent Learning | 9.50 | 12 weeks | 114 |
| TOTAL | 150 |
Swinburne Online
| Type | Hours per week | Number of weeks | Total (number of hours) |
|---|---|---|---|
| Online Directed Online Learning and Independent Learning | 12.50 | 12 weeks | 150 |
| TOTAL | 150 |
Assessment
| Type | Task | Weighting | ULO's |
|---|---|---|---|
| Assignment | Individual | 20 - 30% | 1,2,3,4,5 |
| Presentation | Group | 20 - 40% | 1,3,4,5,6 |
| Final-Semester Test | Individual | 30 - 50% | 1,2,3,4 |
| Online Tests | Individual | 10 - 20% | 1, 2, 3 |
Content
- Types of fixed income securities and their characteristics
- Fixed income and debt markets
- Fixed income valuation and return analysis
- Term structure determination and yield spreads
- Interest rate risk and credit risk analysis
- Valuing bonds and embedded options
- Structured products
- Ethics in investing in fixed income securities
- FinTech advances with the fixed income market
Study resources
Reading materials
A list of reading materials and/or required textbooks will be available in the Unit Outline on Canvas.