FIN 709 (01) - Fixed Income Analysis and Valuation

Fixed Income Analysis

Durham   Paul College of Business&Econ :: Finance
Credits: 4.0
Term: Fall 2024 - Full Term (08/26/2024 - 12/09/2024)
Grade Mode: Letter Grading
Class Size:   30  
CRN: 12995
This course is a rigorous and analytical study of a wide range of topics in the fixed income arena. It focuses on securities (mainly bonds), and things that can look like securities (mainly loans) that promise an ongoing and consistent cash flow (hence: "fixed income"). The valuations of these things are influenced by interest rates and credit risk. The course is focused on the concepts and tools that are important to practitioners and investors who want to use these securities, whether as issuer or as investor. It includes a study of the markets in which these securities trade.
Prerequisite(s): (ADMN 570 with minimum grade of C- or HMGT 655 with minimum grade of C- ) and FIN 702 with minimum grade of C-
Equivalent(s): ACFI 709
Only listed colleges in section: Paul College of Business&Econ
Classes not allowed in section: Freshman
Only listed majors in section: BUSADM:FINANCE
Instructors: Richard Kilbride

Times & Locations

Start Date End Date Days Time Location
8/26/2024 12/9/2024 TR 11:10am - 12:30pm PCBE 185
Additional Course Details: 

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 (very) basic elements of real estate finance, particularly the process of creating and valuing residential mortgages. (Though astute observers will note that "Mortgage Banking" has been dropped from the course title.)

Further, the course acknowledges that much of the controversy regarding the 2008 Financial Crisis and many other crises in general shared the use of leverage.  Given the fact that the use of debt can be precarious, we will take a deep dive into financial crises and examine the underlying issues regarding overusage of leverage.

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. Prerequisite FIN 702, Investment Analysis


Wiley, Fixed Income Analysis, 5th Edition