Debt Instruments and Markets

Catalog description

The graduate course, Debt Instruments and Markets, provides a detailed examination of debt securities and their trading markets. The course begins with an overview of various types of securities, emphasizing their unique cash flow patterns and risk profiles. A central focus of the course is the study of the term structure of interest rates, covering spot, coupon, and forward yield curves. These concepts are explored in the context of traditional bond yield calculations and the relationship between price and yield. This course also addresses risk management strategies for different notes, including floating and fixed-rate notes. This course will explain the use of Libor-based derivatives such as interest rate swaps and Eurodollar futures. Another significant aspect of the course is the analysis of default risk and its impact on bond valuation, including examining credit derivatives for managing default risk. Furthermore, students will comprehensively understand Treasury futures and options, exploring their complexities and applications in financial markets. The course concludes with a study of managing interest rates and currency exposure in international debt markets, providing practical insights relevant to global finance. Spanish language learners may complete this course in Spanish.