Fixed Income Analysis

MGEST1219 FINANCE
MGEST2164 Derivative Securities MGEST1219 FINANCE
MGEST2164 Derivative Securities

This course is designed to provide a comprehensive
introduction (level1 CFA and part of level 2) to fixed income
securities by covering the following broad topical areas:
- the institutions, instruments, and operations involved in
the fixed income securities markets;
- the valuation and the risks of fixed income securities;
- the term structure of interest rate;
- the use and application of interest rate derivatives in the
areas of risk management and financial engineering.

At the end of this course, students will be able to:
- Describe and interpret the general features of fixed
income securities and understand the basic operations of
fixed income markets;
- Apply the discount cash-flow technique to price bond
and be able to describe the relationship between bond
price and yield;
- Illustrate the basic term structure of interest rates and to
extract zero-coupon rates from bond yields;
- To measure interest rate risk using the concepts of
duration and convexity
- Understand the features and uses of bond with option
features ;
- Use basic interest rate derivatives like futures and
options to manage interest rate risk.
- Explain the characteristics mortgage-backed securities
and asset-backed securities;

The contribution of this Teaching Unit to the development and command of the skills and learning outcomes of the programme(s) can be accessed at the end of this sheet, in the section entitled “Programmes/courses offering this Teaching Unit”.