FIN 462

Fixed Income Analysis

This is a course on Fixed Income securities, their markets, valuation and risk assessment and management. Fixed Income securities are debt securities that have been issued with a fixed interest rate and includes money market securities, notes and bonds, and asset-backed securities. Topics include bond features, indentures, covenants, legal, regulatory and tax considerations, issuance, trading and funding of fixed income securities, bond cash flows and valuation, spot and forward rates, term structure of interest rates, benchmark and spread, duration and convexity, interest rate risk, credit and liquidity risk, seniority rankings, bond ratings and financial ratios, and yield spreads. Also covered is the process of asset securitization, and the characteristics of mortgage-backed securities, non-mortgage asset-backed securities, and collateralized debt obligations.

Units: 3.0