Fixed Income Securities

Catalog description

This course will build on previous introduction to fixed income securities (bonds). In the course, we will present and develop the conceptual framework used for; pricing fixed-income securities; fixed-income securities portfolio; hedging; markets and instrument. Bonds basic valuation are reviewed and extended into a detailed examination of the pricing process and yield measurement. The term structure of interest rate is introduced and used in pricing. Volatility and its characteristic, duration and convexity are examined, their implication to the fixed-income security portfolio are analyzed. Market and instruments are covered too. Among them, treasury, agency, municipal and corporate bond markets. Also discussed are the recently popular CDO markets, such as mortgage-backed securities and other. Lastly, hedging tool and their usage is covered, including, future contracts, options and swaps.