Debt Instruments and Markets

(4 Credits)

This course describes important fixed income securities and markets and develops tools for valuing debt instruments and managing interest rate risk. The course covers traditional bond pricing, term structure, and interest rate risk concepts. It also covers the analytical and institutional aspects of fixed income derivatives, such as interest rate swaps, forwards, futures, and options, as well as bonds with embedded options and mortgage-backed securities. Topics also include credit risk, bond portfolio, management, financial engineering, and international fixed income. The study of fixed income is quantitative and technical by nature. Prerequisite: BUSF-SHU 202 . Fulfillment: This course satisfies BUSF Finance Elective; BUSM Non-Marketing elective; IMB Business elective.