In the global financial market, fixed income markets are dominant at more than three times bigger than the total size of global equity markets. So, if you want a successful career in global business, you need an advanced understanding of fixed income markets, and at Kent Business School, we can get you there. You'll answer the key questions. What are the main assets being traded in fixed income markets? What are the main risks and opportunities? How do I take advantage of these? Through answering these questions, you'll gain an understanding of the risk profile of different fixed income assets, while learning how to apply modern techniques to build effective fixed income portfolios and create efficient solutions for a wide range of employers across hedging, speculation and arbitrage strategies.
Total contact hours: 36
Private study hours: 114
Total study hours: 150
Main assessment methods
Group Empirical Report (2000 words) (20%)
Individual Report (2000 words) (20%)
Examination, 2 hour (60%).
Reassessment method:
100% Exam
Bruce Tuckman and Angel Serrat, 2011, Fixed Income Securities: Tools for Today's Markets, 3rd Edition, Wiley.
Moorad Choodhry, 2005, Fixed Income Securities and Derivatives Handbook: Analysis and Valuation, Bloomberg Press.
Lionel Martellini, Philippe Priaulet and Stephane Priaulet, 2003, Fixed-Income Securities: Valuation, Risk Management and Portfolio Strategies, Wiley.
John Hull, 2011, Options, Futures and other Derivatives, 8th Edition, Prentice Hall.
See the library reading list for this module (Canterbury)
The intended subject specific learning outcomes.
On successfully completing the module students will be able to:
- model and evaluate the mechanics of fixed income securities and their derivative instruments;
- quantify and evaluate the various sources of risk in fixed-income markets;
- implement various hedging strategies using traditional and derivative fixed income instruments;
- model the term structure of interest rates;
- construct alternative passive and active portfolios based on the shape of the term structure;
- implement fixed income strategies using real-market data.
The intended generic learning outcomes.
On successfully completing the module students will be able to:
- work through complex quantitative exercises;
- analyse real-market data;
- work in groups to complete and present empirical projects;
- identify and understand current literature in the field.
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