Fixed Income and Debt Markets
Duration
- One Semester or equivalent
Contact hours
- 36 hours
On-campus unit delivery combines face-to-face and digital learning. For Online unit delivery, learning is conducted exclusively online.
2022 teaching periods
Hawthorn
| Higher Ed. Semester 1 | Higher Ed. Semester 2 | |
|---|---|---|
Dates: Results: Last self enrolment: Census: Last withdraw without fail: |
Dates: Results: Last self enrolment: Census: Last withdraw without fail: |
Swinburne Online
| Teaching Period 1 | Teaching Period 3 | |
|---|---|---|
Dates: Results: Last self enrolment: Census: Last withdraw without fail: |
Dates: Results: Last self enrolment: Census: Last withdraw without fail: |
Corequisites
NilAims and objectives
The aim of this unit is to provide 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 and how financial technology will disrupt this market in the future will be discussed.
Students who successfully complete this unit will be able to:
2. Identify the risks associated with fixed income securities and recommend measures to reduce these risks
3. Identify and explain the causes and consequences of debt distress in light of economic and financial crises
4. Discuss ethical and technological issues relating to fixed income securities and the investment decision making process and recommend solutions to address the issues
5. Evaluate the applications of financial technology in fixed income markets
Unit information in detail
- Teaching methods, assessment and content.
Teaching methods
Face to Face Mode:
Lectures (12 x 1 hour), Tutorials (12 x 1 hour)
Student workload:
This includes all:
• Scheduled teaching and learning events and activities (contact hours timetabled in a face-to-face teaching space) and scheduled online learning events (contact hours scheduled in an online teaching space), and
To be successful, students should:
• Read all prescribed materials and/or view videos in preparation for each class
• Attend and engage in all scheduled classes (face to face or online)
• Start assessment tasks well ahead of the due date, and submit assessments promptly
• Read / listen to all feedback carefully, and consider it for future assessment
• Engage with fellow students and teaching staff (don’t hesitate to ask questions)
Lectures (12 x 1 hour), Tutorials (12 x 1 hour)
Online: Directed Online Learning and Independent Learning
12 hours (12 x 1 hour)
Independent Learning
114 hours (12 x 9.5 hours)
Swinburne Online: Directed Online Learning and Independent Learning
12 hours (12.5 hours)
For all teaching and learning structures (both face to face and online), students are expected to spend an average of 150 hours per unit in total over the duration of the study period
• Scheduled teaching and learning events and activities (contact hours timetabled in a face-to-face teaching space) and scheduled online learning events (contact hours scheduled in an online teaching space), and
• Non-scheduled learning events and activities (including directed online learning activities, assessments, independent study, student group meetings, and research)
• Read all prescribed materials and/or view videos in preparation for each class
• Attend and engage in all scheduled classes (face to face or online)
• Start assessment tasks well ahead of the due date, and submit assessments promptly
• Read / listen to all feedback carefully, and consider it for future assessment
• Engage with fellow students and teaching staff (don’t hesitate to ask questions)
Assessment
Assignment (Individual) 40 - 50%
Online Tests (Individual) 10 - 20%
Final Examination (Individual) 30 - 50%
Online Tests (Individual) 10 - 20%
Final Examination (Individual) 30 - 50%
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.
Reading materials
Students are advised to check the unit outline in the relevant teaching period for appropriate textbooks and further reading.