The aim of this course is to provide you with an introduction to the valuation of fixed income securities and the management of fixed income investment portfolios.
Coupon bonds are the most widely recognized fixed income securities.
We will start with the basics of bond pricing - the relationship between the price of a bond, measures of return on the bond and measures of risk. Next, we will discuss the various sectors of the bond market, the types of securities traded and the risks involved in each sector. The typical fixed income security can be thought of as a portfolio of a simple fixed coupon bond and interest rate derivatives. The tools for the valuation of bonds, fixed income derivatives and credit derivatives will be the focus of the third segment of the course. With the building blocks in place, we will discuss portfolio management strategies and risk management.