FNCE 3171

Investments 2

3.0 Credits

Description

Students learn to design and analyze fixed income securities and alternative investments. The importance of interest rates, credit risk, and product features in the valuation of these assets is emphasized. Topics include an introduction to fixed income investments, fixed income markets, yield curves, bond pricing, valuation and volatility, credit analysis for firms and individuals, asset backed securities, real estate, hedge funds and private equity.

Delivery Methods

Online, self-paced.

Recommended Requisites

FNCE 2120, FNCE 2121, ECON 2330, ECON 2331

Exclusions

BBUS 4150
BBUS 4151
FNCE 3170

Objectives

  • Examine and describe various types and structures of debt instruments.
  • Differentiate between different types of bond issuers.
  • Interpret quantitative measures including price, yield to maturity, and duration for various fixed income securities.
  • Examine the risk-return characteristics of fixed income securities.
  • Apply the 4 Cs (capacity, collateral, covenants and character) of credit analysis.
  • Explain how asset-backed securities are created.
  • Contrast alternative investment asset classes versus traditional stock and bond investments and their roles in a portfolio.
  • Estimate the value of a real estate investment using various methods.
  • Contrast different private equity and hedge fund strategies, fees, structures and benchmarks.

Course Outline

  • Module 1: Defining Features of Fixed Income Securities
  • Module 2: Fixed Income Markets
  • Module 3: Fixed Income Valuation
  • Module 4: Risk and Return
  • Module 5: Fundamentals of Credit Analysis
  • Module 6: Asset Backed Securities
  • Module 7: Alternative Asset Classes
  • Module 8: Real Estate
  • Module 9: Hedge Funds
  • Module 10: Private Equity

Course Duration

30 weeks.

Required Text and Materials

Note: Students will need to purchase this etext directly from the publisher. Link below.

Petitt, B., Pinto, J. E., Pirie, W. L., CAIA Association, Chambers, D. R., Kazemi, H., … Anson, M. J. (2018). Fixed Income and Alternative Investments. Hoboken (NJ): John Wiley & Sons, Inc.
Type: Etext: ISBN: 9781119545255

http://www.campusebookstore.com/AccessCodes/AccessCodeBrowse.aspx?CODEID=25874&bookseller_id=241

Additional Requirements

A computer with Internet access is required.

Open Learning Faculty Member

An Open Learning Faculty Member is available to assist students. Primary communication is through the Learning Environment's "Mail" tool. Students will receive the necessary contact information when starting the course.

Assessments

To successfully complete this course, students must achieve a passing grade of 50% or higher on the overall course and 50% or higher on the mandatory final exam.

Assignment 1: Fixed-Income Securities, Markets and Valuation 15%
Assignment 2: Fixed-Income Risk and Return, Credit Analysis and Asset-Backed Securities 10%
Assignment 3: Proposal and Research Paper 20%
Final Exam* 40%
Total 100%

*Mandatory