Fixed Income Markets (MSB365)

Fixed income securities constitute a major asset class in international financial markets, and an understanding of these securities is important to asset managers, financial analysts, and investors. This course gives you an overview of fixed income markets with an emphasis on government bond markets. You will also learn about bond trading, the term structure of interest rates and important fixed income derivatives.


Course description for study year 2024-2025. Please note that changes may occur.

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 covers

  • 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
  • Interest rate derivatives

Learning outcome

Knowledge

Upon completion of the course, students will acquire knowledge in

  • evaluating the interest rate risk of fixed income securities
  • how to extract information from the yield curve
  • the use of repo markets in fixed income securities
  • the use of interest rate derivatives

Skills

Upon completion of the course, students will acquire the skills to

  • manage the interest rate risk of fixed income securities
  • use repos to establish long and short bond positions
  • use of interest rate derivatives
  • apply bond data in quantitative analysis

Required prerequisite knowledge

None

Exam

Group project and written exam

Form of assessment Weight Duration Marks Aid
Group project 1/5 Letter grades
Written exam 4/5 3 Hours Letter grades Open book

Method of work

Lectures: 24 hours

Group work/mandatory paper: 35 hours

Self-study: 80-90 hours

Open for

Industrial Economics - Master of Science Degree Programme Master of Science in Accounting and Auditing Business Administration - Master of Science Business Administration - Master of Science (5 years)
Exchange programmes at UIS Business School

Course assessment

There must be an early dialogue between the course supervisor, the student union representative and the students. The purpose is feedback from the students for changes and adjustments in the course for the current semester.In addition, a digital subject evaluation must be carried out at least every three years. Its purpose is to gather the students experiences with the course.

Literature

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