This module focuses on concepts and tools that are useful to asset managers who want to use fixed income securities for investing, market-making or speculating. First, fixed income markets and instruments are overviewed; then, basic concepts of bond portfolio management (e.g. price-yield relationship, discount factors, and price sensitivity measures) are introduced. The module is completed by exploring the quantitative tools used to value bonds and manage bond portfolios. Both theoretical intuitions and practical implications are emphasized.
This course is quantitative in nature and some mathematical derivations may be carried out. Although recalls of the main concepts will be made in class, you are expected to be familiar with basic mathematics, statistics and economics and some basic concepts of investment management.
Module Aims
* To study fixed income markets and instruments
* To study concepts of bond portfolio management
* To examine the quantitative tools used to value and manage bond portfolios
Learning Outcomes
On successful completion of the module, students will be able to:
* Understand the depth and breadth of fixed income markets and instruments
* Construct, value and manage portfolio of fixed income securities
* Compute and interpret the term structure of interest rates
* Set up investment strategies based on Treasury and Corporate fixed
income securities
Skills for Your Professional Life (Transferable Skills)
After completing this module, students have developed and improved the following employability-related skills:
* In-depth knowledge and understanding of the concepts and tools related to fixed income investment and trading activities
* Enhance your analytical and critical thinking by solving real-world problems, such as producing a credit analysis report, identifying mispricing and setting up a trading strategy, and interpreting the shape and movement of the yield curve
* Improve your commercial awareness by investigating the current trends in fixed income markets
This course is quantitative in nature and some mathematical derivations may be carried out. Although recalls of the main concepts will be made in class, you are expected to be familiar with basic mathematics, statistics and economics and some basic concepts of investment management.
Module Aims
* To study fixed income markets and instruments
* To study concepts of bond portfolio management
* To examine the quantitative tools used to value and manage bond portfolios
Learning Outcomes
On successful completion of the module, students will be able to:
* Understand the depth and breadth of fixed income markets and instruments
* Construct, value and manage portfolio of fixed income securities
* Compute and interpret the term structure of interest rates
* Set up investment strategies based on Treasury and Corporate fixed
income securities
Skills for Your Professional Life (Transferable Skills)
After completing this module, students have developed and improved the following employability-related skills:
* In-depth knowledge and understanding of the concepts and tools related to fixed income investment and trading activities
* Enhance your analytical and critical thinking by solving real-world problems, such as producing a credit analysis report, identifying mispricing and setting up a trading strategy, and interpreting the shape and movement of the yield curve
* Improve your commercial awareness by investigating the current trends in fixed income markets
- Module Supervisor: Chiara Banti
Category: Finance