Postgraduate Course: Fixed Income (CMSE11476)
||College||College of Arts, Humanities and Social Sciences
|Credit level (Normal year taken)||SCQF Level 11 (Postgraduate)
||Availability||Not available to visiting students
|Summary||This elective course is designed to provide an overview of fixed income (debt) markets and the institutional structures that surround fixed income trading. As well as gaining familiarity with the features of commonly traded fixed income instruments, students will learn how these instruments are priced and gain an understanding of commonly used fixed income risk metrics.
Students will spend time analysing the yield curve and examining the theory of the term structure of interest rates. Students will also study the mechanics of debt securitisation within the context of the recent financial crisis.
Deep understanding of these topics should equip students with a solid base of analytical and critical reasoning skills to help enable pursuit of a wide array of careers including fixed income asset management, corporate finance and treasury management.
Course content includes bond pricing, duration and convexity, the yield curve, term structure of interest rates, credit risk analysis, bonds with embedded options, securitisation and the financial crisis, fixed income portfolio management.
Entry Requirements (not applicable to Visiting Students)
||Other requirements|| None
Course Delivery Information
|Not being delivered|
On completion of this course, the student will be able to:
- Understand and critically discuss the pricing and primary risk exposures of major classes of fixed-income securities.
- Understand the market and institutional structures which influence fixed income trading, what drives changes in yield curves and the term structure of interest rates.
- Understand and critically discuss the importance of embedded options such as call provisions, put provisions and convertibility for bond pricing.
- Understand and critically discuss fixed income indexing and performance measurement.
- Critically analyse the securitisation of fixed income instruments in the context of the recent financial crisis.
|Indicative Reading List:|
Fabozzi., F.J., (2016), Bond Markets: Analysis and Strategies, Ninth Edition, Pearson.
Choudhry, M., (2010), An Introduction to Bond Markets, Fourth Edition, Wiley.
|Graduate Attributes and Skills
||Intellectual Skills and Subject Specific Skills:
On completion of the course, students should:
-Have developed a critical understanding of the main principles of fixed income pricing, risk and portfolio management
-Be familiarised with the latest developments and issues in Fixed Income markets
-Cognitive Skills and Personal Development:
-On completion of the course, students should:
-Have developed their ability to understand complex lines of argument and reasoning in fixed income
- Be able to develop the links between fixed income theory and professional practice
- Have improved their analytical reasoning
|Course organiser||Dr Ronan Gallagher
Tel: (0131 6)50 8075
|Course secretary||Miss Yvonne Stewart
Tel: (0131 6)51 5333