2023-2024 / FINA0036-1

Fixed Income Securities

Duration

30h Th

Number of credits

 Advanced Master in Financial Risk Management5 crédits 

Lecturer

François Ghilain

Language(s) of instruction

French language

Organisation and examination

Teaching in the first semester, review in January

Schedule

Schedule online

Units courses prerequisite and corequisite

Prerequisite or corequisite units are presented within each program

Learning unit contents

The main objective of this lecture is to provide a global overview about the fixed income securities. The first part is devoted to the key variable of the fixed income securities valuation, i.e. the interest rates. The second part presents the characteristics and valuation of the fixed income securities, more precisely the valuation of bonds. The following parts analyze the financial risks of these securities; namely the credit and interest rate risks. These parts address the risk measurement and the corresponding hedging strategies. The last parts concern the exchange rates, the risk and other hedging instruments.

Learning outcomes of the learning unit

Understand the available universe of fixed income securities. Analyze the valuation and sensitivities of fixed income securities. Measure the underlying risks of fixed income securities. Create hedging strategies.

Prerequisite knowledge and skills

No prerequisites. Recommended lectures: Financial modelling and portfolio management [FINA0039-1] and Derived financial instruments [FINA0038-1].

Planned learning activities and teaching methods

Ex-cathedra lectures (theory), case studies, exercises and financial simulations.

Mode of delivery (face to face, distance learning, hybrid learning)

Face-to-face.

Recommended or required readings

All documents are available at http://campushd.hec.ulg.ac.be/

Written exam (theoretical questions and exercises).

Work placement(s)

Organisational remarks and main changes to the course

Contacts

Affiliate Professor: fghilain@skynet.be

Association of one or more MOOCs