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.
FNCE 2120, FNCE 2121, ECON 2330, ECON 2331
- 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.
- 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
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 &
Type: Etext: ISBN: 9781119545255
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.
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%|