FIN 709 (01) - Fixed Income Analysis and Valuation

This is a course about interest rates. “Rates” are important, because every cashflow calculation in finance includes an interest rate. If you have curiosity about being at the corner of economics and markets, it is interest rates that determine much of the traffic.

While the cash flows of fixed income securities are contractually specified, the valuation of bonds is particularly challenging given interest rate movements, credit risk, and embedded optionality. 

Additionally, as part of an examination of structured products, the course will examine some basic elements of asset-backed finance, particularly the process of creating and valuing residential mortgages. 

Students are expected to possess effective written and oral communication skills, to be knowledgeable of the global interest rate environment, to possess the ability to perform in a team context, to possess critical thinking skills, and to possess an ethical understanding and perspective. 

The class, by its nature, requires a moderate level of quantitative skill, but more importantly it will require consistent focus. In the end, we want you to not just know about interest rates, creditworthiness, bonds, and bond markets, but we want you to know what these things mean and how you can use the information.