BUU33620 Introduction to Fixed-Income Securities and Alternative Investments
(5 ECTS credits)
How to calculate the value of various bonds? What is duration and convexity and how can we use these concepts? Is there a difference between commercial and non-commercial fixed income securities? What is the depth of the international bond market? What is the reason in creating asset backed securities? What is the importance of derivatives in financial industries? Various commodities could be traded and there are some specifics in these trades as opposed to trades in financial assets.
These commonly asked financial questions form the core issues that we will address in this course. In the course we will be concerned both with the practice and theory of managerial decision making in relation to these and related questions.
Much of this course is related to material that would typically be covered in the Chartered Financial Analyst examination at Level I and Level II for the corporate finance area. The CFA is a professional, graduate level, qualification. It is eminently suited to those who are interested in financial analysis, fund management, equity analysis, financial research etc. Details of the qualification and the CFA institute can be found at their website, www.cfainstitute.org. CFA candidates take three levels of examinations. The required skills etc on which they are examined are contained in the CFA Body of Knowledge. However, please note that this course is independent of and not associated with the CFA Institute.
On successful completion of this course, students will be able to:
- Understand various types of fixed-income securities
- Apply portfolio concepts in fixed income securities’ management
- Compute and interpret the main estimators of central tendency and dispersion
- Apply business, fixed income securities’ management, financial statement and investment logic to address issues in this module
- Evaluate basic derivative products
- Understand the underpinnings of venture capital, Private equity and other alternative investment asset classes
- Understand commodity markets
- Find journal and other material on the library local page using the online databases
Recommended Texts/Key Reading:
We strongly recommend that you purchase either one of these textbooks.
Frank J. Fabozzi (2010), Bond Markets, Analysis and Strategies, 7th Edition, Pearson Prentice Hall, Upper Saddle River, New Jersey, ISBN: 978-0-13-609974-1
Frank J. Fabozzi (2013), Bond Markets, Analysis and Strategies, 8th Edition, Pearson Prentice Hall, Upper Saddle River, New Jersey, ISBN: 978-0-273-76613-1
BUU22550 Introduction to Finance (SF Year)
Group assignment - 40%
Annual examination - 60%