COMM 474 - Fixed Income Markets and Management

This course examines various fixed income instruments and derivatives of those investments. The risk profiles of the instruments will be determined and used in establishing fixed income investment portfolios appropriate for different objectives and strategies. Performance attribution techniques will show how to evaluate the success of any strategy.

Learning objectives

Upon successful completion of this course, students will have the knowledge and skills to:

• assess the valuation of bonds from pricing models and yield curves.
• determine risk exposures for individual bonds and portfolios of bonds.
• determine market expectations for future interest rates.
• assess credit risk and value in provincial and corporate bonds.
• value options embedded in some corporate bonds.
• employ active interest-rate speculation strategies.
• use derivative instruments to speculate or hedge risk
• measure fixed income portfolio performance.

Corequisite: COMM 374.