Fixed Income Analysis

Academic Program: 
Course Term: 
1st year
Term: 
Winter
Credits: 
2.0
ECTS credits: 
3.0
Status: 
Elective
Course Description: 

This course covers analytical tools and techniques required to analyze fixed-income securities in modern financial markets. Theories, models, quantitative methods and their applications in fixed-income markets will be emphasized. Reuters examples, case studies and trading games will be used to illustrate how market practitioners undertake fixed-income analysis, investment and trading

Learning Outcomes: 

*

Core Learning Area

Learning Outcome

Interpersonal Communication Skills

Participate in class discussions and problem solving exercises. Present arguments and findings. Objectively critique findings of fellow students.

Technology Skills

Use of MS Excel tools in problem solving. Use of Thomson Reuters Eikon and specialist software will be strongly encouraged.

Cultural Sensitivity and Diversity

Harness international and professional diversity of students in viewing issues and problems from different perspectives.

Quantitative Reasoning

Learn theories, models, quantitative methods and their applications in fixed-income markets.                                                                                        

Critical Thinking

Exercise the powers of inquiry, logical thinking and critical analysis. Question the applicability of conventional prescriptions, as well as the impact of non-quantitative information.

Ethics and Social Responsibility

Evaluate and discuss challenges related to ethical and professional behavior in fixed income markets.

Management Knowledge and Skills

Acquire a fundamental understanding of decision making in fixed-income markets. Use of Reuters examples, case studies and trading games to illustrate how market practitioners undertake fixed-income analysis, investment and trading.

Assessment: 

*

Grading will be based on the total score out of 100, in line with CEU’s standard grading guidelines.

  • Group project (40%)
  • Class participation and problem solving (20%)
  • Final exam (40%).

Group project

Students will be asked to form groups of 4-5 and conduct a bond portfolio investment assignment. Details will be formally announced and discussed in the first lecture.

Class participation and problem solving

Class participation includes attendance, attitude, and volunteered and cold call responses. All reading assignments should be completed PRIOR to the class we cover them in.

The case method is often uncomfortable to students given the inherent uncertainty of having to make choices with limited information at hand. Please note that there are often no “right” answers.

Final exam

There will be ONE closed-book final exam, to be held in the final lecture. The exam will be a one-hour paper with multiple choice or open-ended essay questions.

Prerequisites: 

* Finance