Fixed Income Securities

Catalog description

This course builds on the concepts learned in MGMT 505 and FIN 540 that apply to fixed income securities including analytical techniques to price bonds, calculate yields, solve for duration and convexity and learn basic portfolio management techniques. We will then extend these basic concepts to understand various alternative securities such as floaters, inverse floaters, swaps, bond options and asset-backed securities. Significant time will be devoted to learning about mortgage bonds, how they are priced, and the risks that make them different from other bonds and to price IOs, POs and CMOs. The course will also cover some of the institutional features of bond markets, in particular municipal bond markets, emerging bond markets and U.S. Treasury auctions. Prerequisite: MGMT 505.