Indian Institute of Technology Guwahati

Proposal for a New Course

Course Number & Title: BM605H – Fixed Income Investments
L-T-P-C: 4-0-0-4
Course Content / Syllabus:

Overview of fixed income securities; Coupons, duration, convexity; Bond pricing, time value of money, yield; Risks associated with bonds, interest risk, default risk, liquidity risk; Forecasting interest rates and bond markets; Yield curve; shape of yield curve; Money market instruments, US treasury and government securities, municipal bonds, corporate bonds; Emerging markets, Brady bonds; Distressed debt securities, main characteristics of distressed securities; Mortgage back securities (MBS) and asset backed securities (ABS); Fixed income derivatives, interest rate swaps, credit derivatives; Managing fixed income portfolio.

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