Fixed Income Securities
One Semester or equivalent
- 36 hours
On-campus unit delivery combines face-to-face and digital learning. For Online unit delivery, learning is conducted exclusively online.
2023 teaching periods
Higher Ed. Semester 2
Last self enrolment:
Last withdraw without fail:
50 credit points
Aims and objectives
This unit aims to teach 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.
Students who successfully complete this unit will be able to:
1. Critically analyse the characteristics of fixed income securities, markets, and valuation techniques.
2. Apply advanced knowledge and quantitative skills in risk analysis and valuation of fixed income portfolios.
3. Demonstrate advanced knowledge of the term structure of interest rates and evaluate the trading behaviour of market participants.
4. Critically reflect on technological issues relating to fixed income portfolio formation and investment decision-making process.
5. Work collaboratively in groups
Unit information in detail
- Teaching methods, assessment and content.
Face to Face:
Class 36 hours (12 x 3 hours) weekly
114 hours (12 x 9.5)
Assignment (Group) 40-50%
Online Quizzes (Individual) 10-20%
Final Examination (Individual) 30-50%
- 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
- Reading materials.
Students are advised to check the unit outline in the relevant teaching period for appropriate textbooks and further reading.