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.

Teaching Periods
Location
Start and end dates
Last self-enrolment date
Census date
Last withdraw without fail date
Results released date
Semester 1
Location
Hawthorn
Start and end dates
26-February-2024
26-May-2024
Last self-enrolment date
10-March-2024
Census date
31-March-2024
Last withdraw without fail date
12-April-2024
Results released date
02-July-2024
Semester 2
Location
Hawthorn
Start and end dates
29-July-2024
27-October-2024
Last self-enrolment date
11-August-2024
Census date
31-August-2024
Last withdraw without fail date
13-September-2024
Results released date
03-December-2024

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

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
TOTAL150

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
TOTAL150

Assessment

Type Task Weighting ULO's
AssessmentIndividual 30 - 50% 1,2,3,4 
AssignmentIndividual 40 - 50% 1,2,3,4,5 
Online TestsIndividual 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.