DEBT SECURITIES

FIN5DBS

2016

Credit points: 15

Subject outline

In this subject, students will develop a working knowledge of the characteristics of fixed income securities, the operation of debt markets and the mechanics of trading these securities. Students will also develop a thorough knowledge of the measurement of the yield of fixed interest securities, the various relevant yield spread measures and the term structure of interest rates. This will then be used in the valuation of fixed interest securities, including the valuation of bonds with embedded options, structured securities and international bonds. Specific attention will also be given to credit analysis and risk assessment and the measurement of interest rate risk.

SchoolLa Trobe Business School

Credit points15

Subject Co-ordinatorMichael Li

Available to Study Abroad StudentsNo

Subject year levelYear Level 5 - Masters

Exchange StudentsNo

Subject particulars

Subject rules

PrerequisitesN/A

Co-requisitesN/A

Incompatible subjectsN/A

Equivalent subjectsN/A

Special conditionsN/A

Learning resources

Readings

Resource TypeTitleResource RequirementAuthor and YearPublisher
ReadingsFixed income analysisPrescribedFabozzi, F.2ND EDN., N.J., JOHN WILEY, 2007

Graduate capabilities & intended learning outcomes

01. describe in detail the characteristics of various types of fixed income securities and markets;

Activities:
Lectures and tutorials
Related graduate capabilities and elements:
Literacies and Communication Skills (Writing,Speaking,Quantitative Literacy)
Literacies and Communication Skills (Writing,Speaking,Quantitative Literacy)
Literacies and Communication Skills (Writing,Speaking,Quantitative Literacy)
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
Personal and Professional Skills (Teamwork including leadership and working in groups,Autonomy and independence,Adaptability Skills,Study and Learning Skills)
Personal and Professional Skills (Teamwork including leadership and working in groups,Autonomy and independence,Adaptability Skills,Study and Learning Skills)
Personal and Professional Skills (Teamwork including leadership and working in groups,Autonomy and independence,Adaptability Skills,Study and Learning Skills)
Discipline -Specific Knowledge and Skills (Discipline-Specific Knowledge and Skills)

02. explain in detail the measurement of the yield of fixed income securities and the term structure of interest rates;

Activities:
Lectures and tutorials
Related graduate capabilities and elements:
Literacies and Communication Skills (Writing,Speaking,Quantitative Literacy)
Literacies and Communication Skills (Writing,Speaking,Quantitative Literacy)
Literacies and Communication Skills (Writing,Speaking,Quantitative Literacy)
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
Personal and Professional Skills (Teamwork including leadership and working in groups,Autonomy and independence,Adaptability Skills,Study and Learning Skills)
Personal and Professional Skills (Teamwork including leadership and working in groups,Autonomy and independence,Adaptability Skills,Study and Learning Skills)
Personal and Professional Skills (Teamwork including leadership and working in groups,Autonomy and independence,Adaptability Skills,Study and Learning Skills)
Discipline -Specific Knowledge and Skills (Discipline-Specific Knowledge and Skills)

03. understand the financial and economic theory on which the valuation of fixed income securities is founded;

Activities:
Lectures and tutorials
Related graduate capabilities and elements:
Literacies and Communication Skills (Writing,Speaking,Quantitative Literacy)
Literacies and Communication Skills (Writing,Speaking,Quantitative Literacy)
Literacies and Communication Skills (Writing,Speaking,Quantitative Literacy)
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
Personal and Professional Skills (Teamwork including leadership and working in groups,Autonomy and independence,Adaptability Skills,Study and Learning Skills)
Personal and Professional Skills (Teamwork including leadership and working in groups,Autonomy and independence,Adaptability Skills,Study and Learning Skills)
Personal and Professional Skills (Teamwork including leadership and working in groups,Autonomy and independence,Adaptability Skills,Study and Learning Skills)
Discipline -Specific Knowledge and Skills (Discipline-Specific Knowledge and Skills)

04. value fixed income securities and measure interest rate risk;

Activities:
Lectures and tutorials
Related graduate capabilities and elements:
Literacies and Communication Skills (Writing,Speaking,Quantitative Literacy)
Literacies and Communication Skills (Writing,Speaking,Quantitative Literacy)
Literacies and Communication Skills (Writing,Speaking,Quantitative Literacy)
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
Personal and Professional Skills (Teamwork including leadership and working in groups,Autonomy and independence,Adaptability Skills,Study and Learning Skills)
Personal and Professional Skills (Teamwork including leadership and working in groups,Autonomy and independence,Adaptability Skills,Study and Learning Skills)
Personal and Professional Skills (Teamwork including leadership and working in groups,Autonomy and independence,Adaptability Skills,Study and Learning Skills)
Personal and Professional Skills (Teamwork including leadership and working in groups,Autonomy and independence,Adaptability Skills,Study and Learning Skills)
Discipline -Specific Knowledge and Skills (Discipline-Specific Knowledge and Skills)

05. apply economic and financial theory to credit analysis for a pubic listed company.

Activities:
Lectures and tutorials
Related graduate capabilities and elements:
Literacies and Communication Skills (Writing,Speaking,Quantitative Literacy)
Literacies and Communication Skills (Writing,Speaking,Quantitative Literacy)
Literacies and Communication Skills (Writing,Speaking,Quantitative Literacy)
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
Personal and Professional Skills (Teamwork including leadership and working in groups,Autonomy and independence,Adaptability Skills,Study and Learning Skills)
Personal and Professional Skills (Teamwork including leadership and working in groups,Autonomy and independence,Adaptability Skills,Study and Learning Skills)
Personal and Professional Skills (Teamwork including leadership and working in groups,Autonomy and independence,Adaptability Skills,Study and Learning Skills)
Personal and Professional Skills (Teamwork including leadership and working in groups,Autonomy and independence,Adaptability Skills,Study and Learning Skills)
Discipline -Specific Knowledge and Skills (Discipline-Specific Knowledge and Skills)

Subject options

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Start date between: and    Key dates

Melbourne, 2016, Semester 1, Day

Overview

Online enrolmentYes

Maximum enrolment sizeN/A

Enrolment information

Subject Instance Co-ordinatorMichael Li

Class requirements

Lecture Week: 10 - 22
One 2.0 hours lecture other recurrence on weekdays during the day from week 10 to week 22 and delivered via face-to-face.

Tutorial Week: 10 - 22
One 1.0 hours tutorial other recurrence on weekdays during the day from week 10 to week 22 and delivered via face-to-face.

Assessments

Assessment elementComments% ILO*
five 20-30 minute tutorial assessment tasksBoth individual and group tutorial assessment tasks may be undertaken20 01, 02, 03, 04
one 3-hour final examination60 01, 02, 03, 04
one 4,000-word group assignment1,000-words per student20 05

Melbourne, 2016, Semester 2, Day

Overview

Online enrolmentYes

Maximum enrolment sizeN/A

Enrolment information

Subject Instance Co-ordinatorMichael Li

Class requirements

Lecture Week: 31 - 43
One 2.0 hours lecture other recurrence on weekdays during the day from week 31 to week 43 and delivered via face-to-face.

Tutorial Week: 31 - 43
One 1.0 hours tutorial other recurrence on weekdays at night from week 31 to week 43 and delivered via face-to-face.

Assessments

Assessment elementComments% ILO*
five 20-30 minute tutorial assessment tasksBoth individual and group tutorial assessment tasks may be undertaken20 01, 02, 03, 04
one 3-hour final examination60 01, 02, 03, 04
one 4,000-word group assignment1,000-words per student20 05