Fixed Income Investment Analysis

Module overview

This module aims to provide you with a comprehensive understanding of the fixed income securities and the analytical tools required for evaluating fixed income securities investments and strategies. Together with an understanding of investment data and performance measurement. You will develop core skills in bond valuation, yield curve analysis, credit risk assessment, and interest-rate risk management, and apply these in the context of modern portfolio construction. Reflecting the evolution of global capital markets, the module integrates the study of investment strategies and introduces sustainable fixed income instruments, such as green and sustainability-linked bonds. In addition, the module offers a brief session on the use of AI, machine learning, and fintech in bond analytics, providing you with awareness of emerging industry practices. The module blends financial theory, empirical evidence, and practical techniques for analysing fixed income markets and formulating investment strategies in the current financial environment.

Aims and Objectives

Learning Outcomes

Transferable and Generic Skills

Having successfully completed this module you will be able to:

develop clear logical thinking, compose and communicate ideas effectively in writing; and apply teamwork skills in a group work to produce work to deadlines, through group discussions and assignments.

Knowledge and Understanding

Having successfully completed this module, you will be able to demonstrate knowledge and understanding of:

the core theories and quantitative techniques underlying the valuation and risk assessment of fixed income securities.
the principles and mechanics of fixed income investment strategies.
the structure, operation, and economic functions of fixed income securities markets.

Subject Specific Intellectual and Research Skills

Having successfully completed this module you will be able to:

identify and apply the main tools of portfolio performance measurement.
analyse financial market data and evaluate recent developed method on fixed income securities evaluation;

Learning and Teaching

Teaching and learning methods

The course will consist of 12 lectures (two 2-hour lectures each week). Teaching and learning methods consist of a combination of lectures a combination of lectures, tutorials, and class discussion. Discussion threads will be set up for each of the syllabus topics, to which you should post any questions that you have concerning the material. The module content will be delivered through a series of lectures. Lecture materials (such as handouts, case studies and tutorial questions) and additional reading lists are posted on Blackboard to allow an additional point of access.

Study time
Type	Hours
Teaching	24
Independent Study	126
Total study time	150

Resources & Reading list

Textbooks

Fabozzi F.J. Bond Markets, Analysis and Strategies. Prentice.

Bodie, Kane and Marcus (2010). Investments and Portfolio Management. McGraw-Hill.

Fabozzi, F.J. and Markowitz (2011). The Theory and Practice of Investment Management. Wiley.

Pilbeam, K. (2010). Finance and Financial Markets. Palgrave Macmillan.

Madura, J (2012). Financial Institutions and Markets. South-Western Cengage Learning.

Stone, C.A. and Zissu, A (2012). The Securitization Markets Handbook: Structures and Dynamics of Mortgage- and Asset-backed Securities. Wiley.

Assessment

Summative

This is how we’ll formally assess what you have learned in this module.

Breakdown
Method	Percentage contribution
Group essay	20%
Closed book Examination	80%

Referral

This is how we’ll assess you if you don’t meet the criteria to pass this module.

Breakdown
Method	Percentage contribution
Closed book Examination	100%

Repeat

An internal repeat is where you take all of your modules again, including any you passed. An external repeat is where you only re-take the modules you failed.

Breakdown
Method	Percentage contribution
Closed book Examination	100%

Repeat Information

Repeat type: Internal & External