Fixed Income Securities and Markets --- This course provides a comprehensive overview of the essentials of fixed income securities. In particular, the course introduces the principal classes of fixed income securities; money market instruments, Treasury securities, agency securities, corporate debentures, and mortgage-related instruments. In particular, we focus on the institutions, pricing, risks, and hedging of these securities. The course begins with Treasuries, securities affected primarily by interest rate risk. We discuss the mechanisms by which Treasuries are sold, how they are priced, quantifying their interest rate risk, and pricing of securities to manage risk. We examine the pricing of corporate bonds and derivatives that enable investors to hedge credit risk. Finally, the course addresses securitizations in the form of mortgage-backed securities and collateralized mortgage obligations.
Prior to Winter 2015, this course was offered as FIN 309.