DEBT SECURITIES

FIN5DBS

2020

Credit points: 15

Subject outline

In this subject, you will develop, through lessons in our Financial Trading Room, a working knowledge of the characteristics of fixed income securities, the operation of debt markets and the mechanics of trading these securities. You 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.

School: La Trobe Business School (Pre 2022)

Credit points: 15

Subject Co-ordinator: Michael Li

Available to Study Abroad/Exchange Students: Yes

Subject year level: Year Level 5 - Masters

Exchange Students: No

Available as Elective: No

Learning Activities: N/A

Capstone subject: No

Subject particulars

Subject rules

Prerequisites: N/A

Co-requisites: N/A

Incompatible subjects: N/A

Equivalent subjects: N/A

Quota Management Strategy: N/A

Quota-conditions or rules: N/A

Special conditions: N/A

Minimum credit point requirement: N/A

Assumed knowledge: N/A

Learning resources

Fixed income analysis

Resource Type: Book

Resource Requirement: Prescribed

Author: Barbara S. Petitt, et, al.

Year: 2007

Edition/Volume: 3RD EDN

Publisher: N.J., JOHN WILEY

ISBN: N/A

Chapter/article title: N/A

Chapter/issue: N/A

URL: N/A

Other description: N/A

Source location: N/A

Career Ready

Career-focused: No

Work-based learning: No

Self sourced or Uni sourced: N/A

Entire subject or partial subject: N/A

Total hours/days required: N/A

Location of WBL activity (region): N/A

WBL addtional requirements: N/A

Graduate capabilities & intended learning outcomes

Graduate Capabilities

DISCIPLINE KNOWLEDGE AND SKILLS

INQUIRY AND ANALYSIS - Creativity and Innovation

INQUIRY AND ANALYSIS - Critical Thinking and Problem Solving

INQUIRY AND ANALYSIS - Research and Evidence-Based Inquiry

Intended Learning Outcomes

01. Compare and contrast the characteristics of various types of fixed income securities and markets;

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

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

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

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

Melbourne (Bundoora), 2020, Semester 2, Day

Overview

Online enrolment: Yes

Maximum enrolment size: N/A

Enrolment information: N/A

Subject Instance Co-ordinator: Michael Li

Class requirements

LectureWeek: 31 - 43
One 2.00 hours lecture per week on weekdays during the day from week 31 to week 43 and delivered via face-to-face.

TutorialWeek: 32 - 43
One 1.00 hour tutorial per week on weekdays at night from week 32 to week 43 and delivered via face-to-face.

Assessments

Assessment element	Comments	Category	Contribution	Hurdle	%	ILO*
One hour formative examinationEquivalent to 1000 words	N/A	N/A	N/A	No	10	SILO1, SILO2, SILO3, SILO4
Two hour final examinationEquivalent to 2000 words	N/A	N/A	N/A	No	50	SILO1, SILO2, SILO3, SILO4
Individual assignmentEquivalent to 2000 words	N/A	N/A	N/A	No	30	SILO5
Online and/or in-class assessment tasksEquivalent to 500 words	N/A	N/A	N/A	No	10	SILO1, SILO3