BA5827 FIXED INCOME ANALYSIS
| Course Code: | 3125827 |
| METU Credit (Theoretical-Laboratory hours/week): | 3 (3.00 - 0.00) |
| ECTS Credit: | 8.0 |
| Department: | Business Administration |
| Language of Instruction: | English |
| Level of Study: | Graduate |
| Course Coordinator: | Assoc.Prof.Dr. ÇAĞRI TOPAL |
| Offered Semester: | Fall or Spring Semesters. |
Course Objectives
Fixed income securities are an important part of portfolios held by individual and institutional investors around the world. In countries like Turkey, where the stock market is fairly new and highly risky, and treasury securities offer very high real returns, investment in fixed income securities become even more important. Fixed income securities have characteristics that are quite different from equity investments. Therefore, investments in these securities are governed by completely different principles. Furthermore, there are wide varieties of fixed income securities with quite complex cash flow structures in developed markets. Therefore, the objectives of this course are to: • provide a review of different types of fixed income securities available in Turkish and international markets and their characteristics • introduce interest rate models and their usage in valuation of complex cash flow streams of fixed income securities, and • present professional fixed income portfolio management techniques and evaluation of portfolio performance.
Course Content
Fixed income securities are an important part of portfolios held by individual and institutional investors around the world. In countries like Turkey, where the stock market is fairly new and highly risky, and treasury securities offer very high real returns, investments in fixed income securities become even more important. Fixed income securities have characteristics that are quite different from equity investments. Therefore, investments in these securities are governed by completely different principles. Furthermore, there are wide varieties of fixed income securities with quite complex cash flow structures in developed markets. Therefore, the objectives of this course are to:
* provide a review of different types of fixed income securities available in Turkish and international markets and their characteristics
* introduce interest rate models and their usage in valuation of complex cash flow streams of fixed income securities, and
* present professional fixed income portfolio management and evaluation of portfolio performance
Course Learning Outcomes
Upon successful completion of this course, students should be able to:
Course Specific Skills:
Students who complete this course should be able to:
1. identify different types of fixed income securities
2. price complex cash flows streams of fixed income securities
3. measure price volatility of fixed income securities
4. identify and measure different risks involved in fixed income investment
5. implement credit risk models
6. implement professional fixed income portfolio management
7. evaluate the performance of fixed income portfolio managers.
Discipline Specific Skills:
By the end of this course the students will be able to:
8. Become knowledgeable about fixed income securities and apply the basic concepts of finance to valuation of these securities;
9. Develop skills in financial analysis, planning, and decision-making;
Personal and Key Skills:
10. Develop problem solving skills
11. Develop writing and discussion skills
Program Outcomes Matrix
| Level of Contribution | |||||
| # | Program Outcomes | 0 | 1 | 2 | 3 |
| 1 | They attain advanced level of knowledge in the functional areas of business administration such as strategic management, marketing, accounting, finance, organization management, human resources, and operations management. | ✔ | |||
| 2 | They are capable of synthesizing the knowledge that they attained in the area of business administration with the knowledge base that they developed in their undergraduate specialisms. | ✔ | |||
| 3 | They are capable of identifying and analyzing legal, environmental and social factors, which influence the basic functional areas of the business administration. | ✔ | |||
| 4 | They understand and implement rational, systematic and scientific approaches effectively in problem solving and decision-making processes. | ✔ | |||
| 5 | They are capable of applying, analyzing, synthesizing and evaluating the knowledge they developed in diverse fields efficiently. | ✔ | |||
| 6 | They are capable of transferring information by using efficient verbal and written communication techniques. | ✔ | |||
| 7 | They are capable of performing professional communication effectively also in English. | ✔ | |||
| 8 | They know methods of performing efficient teamwork. | ✔ | |||
| 9 | They are capable of understanding and synthesizing academic and scientific research in their areas and able to transform such research into useful knowledge. | ✔ | |||
| 10 | They have competence in all of the stages of scientific research and processes. | ✔ | |||
| 11 | They are knowledgeable in the areas of professional ethics and responsibility. | ✔ | |||
| 12 | They are capable of utilizing their knowledge and skills efficiently in global and multicultural contexts. | ✔ | |||
| 13 | They are knowledgeable in the issues of environment, social responsibility, social justice, quality and cultural values. | ✔ | |||
| 14 | They have a creative, innovative and critical perspective. | ✔ | |||
0: No Contribution 1: Little Contribution 2: Partial Contribution 3: Full Contribution