Fixed Income Markets (MSB365)

Fixed income securities constitute a major asset class in international financial markets. Monetary policy and price discovery in fixed income markets determine their prices and therefore the shape of the yield curve. Understanding the factors that influence the yield curve is of importance to all economic agents. In this course you will learn about the basic instruments in fixed income markets and how they are traded.


Course description for study year 2022-2023. Please note that changes may occur.

See course description and exam/assesment information for this semester (2024-2025)
Facts

Course code

MSB365

Version

1

Credits (ECTS)

5

Semester tution start

Autumn

Number of semesters

1

Exam semester

Autumn

Language of instruction

English

Offered by
Time table

View course schedule

Content

This course gives you an overview of fixed income markets and includes

• An introduction to government bonds, corporate bonds, green bonds

• The yield curve and the term structure of interest rates

• Interest rate risk and duration

• Credit risk and rating agencies

• Liquidity risk and trading in secondary bond markets

  • The repo market and reference rates

• Derivatives including interest rate swaps

Learning outcome

Upon completion of the course, students will have acquired knowledge of

  • the features of major bond markets
  • the relationship between monetary policy and debt markets
  • the importance of repo markets

Upon completion of the course, students will have acquired the skills to

  • calculate the price and interest rate risk of fixed income securities
  • calculate implied forward rates
  • perform empirical bond analysis in R

Required prerequisite knowledge

None

Exam

Method of work

Lectures/video lectures: 25 hours

Group work/mandatory paper: 45 hours

Self-study: 80 hours

Open for

Master in Accounting and Auditing Business Administration - Master of Science Business Administration - Master of Science (5 years)

Course assessment

Students will have the opportunity to give feedback on the course first in an early dialogue, and then in a written course evaluation at the end of the course.

Literature

The syllabus can be found in Leganto