BE362-7-SP-CO:
Fixed Income Securities

The details
2023/24
Essex Business School
Colchester Campus
Spring
Postgraduate: Level 7
Current
Monday 15 January 2024
Friday 22 March 2024
20
26 June 2023

 

Requisites for this module
(none)
BE354 and BE399 and BE953
(none)
(none)

 

(none)

Key module for

MSC N39012 Investment and Wealth Management,
MSC N39024 Investment and Wealth Management,
MSC N35112 Finance and Global Trading

Module description

This module focuses on concepts and tools that are useful to asset managers who want to use fixed income securities for investing, market-making or speculating.


This course is quantitative in nature and some mathematical derivations may be carried out. Although recalls of the main concepts will be made in class, you are expected to be familiar with basic mathematics, statistics and economics and some basic concepts of investment management.

Module aims

The aims of this module are to:



  • Study fixed income markets and instruments.

  • Study concepts of bond portfolio management.

  • Examine the quantitative tools used to value and manage bond portfolios.

Module learning outcomes

 By the end of this module, students will be expected to be able to:



  1. Understand the depth and breadth of fixed income markets and instruments.

  2. Construct, value and manage portfolio of fixed income securities.

  3. Compute and interpret the term structure of interest rates.

  4. Set up investment strategies based on Treasury and corporate fixed income securities.


Skills for Your Professional Life (Transferable Skills)


After completing this module, students have developed and improved the following employability-related skills:



  1. In-depth knowledge and understanding of the concepts and tools related to fixed income investment and trading activities.

  2. Enhance your analytical and critical thinking by solving real-world problems, such as producing a credit analysis report, identifying mispricing and setting up a trading strategy, and interpreting the shape and movement of the yield curve.

  3. Improve your commercial awareness by investigating the current trends in fixed income markets.

Module information

This module will overview fixed income markets and instruments. It will then introduce basic concepts of bond portfolio management (e.g. price-yield relationship, discount factors, and price sensitivity measures). The module is completed by exploring the quantitative tools used to value bonds and manage bond portfolios. Both theoretical intuitions and practical implications are emphasized.

Learning and teaching methods

This module will be delivered via:

  • One 2-hour lecture per week.

Bibliography

The above list is indicative of the essential reading for the course.
The library makes provision for all reading list items, with digital provision where possible, and these resources are shared between students.
Further reading can be obtained from this module's reading list.

Assessment items, weightings and deadlines

Coursework / exam Description Deadline Coursework weighting
Written Exam  In-class Test     100% 
Exam  Main exam: In-Person, Open Book, 120 minutes during Summer (Main Period) 
Exam  Reassessment Main exam: In-Person, Open Book, 120 minutes during September (Reassessment Period) 

Exam format definitions

  • Remote, open book: Your exam will take place remotely via an online learning platform. You may refer to any physical or electronic materials during the exam.
  • In-person, open book: Your exam will take place on campus under invigilation. You may refer to any physical materials such as paper study notes or a textbook during the exam. Electronic devices may not be used in the exam.
  • In-person, open book (restricted): The exam will take place on campus under invigilation. You may refer only to specific physical materials such as a named textbook during the exam. Permitted materials will be specified by your department. Electronic devices may not be used in the exam.
  • In-person, closed book: The exam will take place on campus under invigilation. You may not refer to any physical materials or electronic devices during the exam. There may be times when a paper dictionary, for example, may be permitted in an otherwise closed book exam. Any exceptions will be specified by your department.

Your department will provide further guidance before your exams.

Overall assessment

Coursework Exam
30% 70%

Reassessment

Coursework Exam
0% 100%
Module supervisor and teaching staff
Dr Chiara Banti, email: cbanti@essex.ac.uk.
Dr Chiara Banti and Dr Vivek Nawosah
E: ebspgtad@essex.ac.uk

 

Availability
Yes
No
Yes

External examiner

Dr Nikolaos Voukelatos
University of Kent
Senior Lecturer in Finance
Resources
Available via Moodle
Of 20 hours, 18 (90%) hours available to students:
0 hours not recorded due to service coverage or fault;
2 hours not recorded due to opt-out by lecturer(s), module, or event type.

 

Further information
Essex Business School

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