20506 Fixed Income Securities6cp; availability: C10226 Bachelor of Business (Shanghai University) students only
Requisite(s): 25300 Fundamentals of Business Finance
There are course requisites for this subject. See access conditions.
The market for fixed income financial instruments is the financial sector's largest worldwide. This specialised subject focuses on the conceptual and theoretical aspects of interest rates and interest rate risk management in local and international fixed income markets.
The subject includes material on the term structure of interest rate, including spot, forward and swap interest rate structures. The pricing of fixed and floating rate bond pricing is addressed. The role of bond portfolio strategies in generating speculative profits and in the reduction of portfolio risk is examined in depth. Students are provided with an insight into financial engineering in their construction of fairly priced structured notes.
The subject focuses students on the practical problems of fixed income portfolio management through a series of hands-on, computer-based simulation exercises. This is a quantitative-based subject where applied problems and calculations are emphasised.
Detailed subject description.