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FIN240 Interest Rate Markets

The objective of this subject is to provide you with a practical understanding of interest rate markets, products and their use in the management of interest rate risk. Students will gain an understanding of pricing calculations and how they are used to value short-term and long-term interest rate securities. In addition, students will gain an understanding of portfolio management.

This subject contributes to the financial markets and risk management majors.

For more information, please refer to the subject outline.

  • Learning outcomes
    • At the completion of this subject students should be able to:

      1. Discuss the factors that influence interest rate markets and current developments in interest rates.
      2. Discuss the features of short term, long term, Australian, international, government, non-government, derivatives, securitised and debt products and markets.
      3. Apply calculations in order to evaluate relevant products.
      4. Apply market conventions to calculations.
      5. Evaluate different investment opportunities in relevant products and markets.
      6. Manage risks for relevant products.
      7. Discuss the procedures for managing an interest rate portfolio to minimise risk and enhance returns.
  • Subject content
    • Topic Title
      Topic 1 Factors affecting interest rates
      Topic 2 Interest rate calculations and market conventions
      Topic 3 Short-term securities and derivatives
      Topic 4 Long-term securities and derivatives
      Topic 5 Measurement in interest rate markets
      Topic 6 Non-government debt markets
      Topic 7 Portfolio management
      Topic 8 International debt markets
      Topic 9 Case study

  • Assessment
  • Prerequisites
    • Students enrolling in a Masters level elective subject are assumed to have the pre-requisite knowledge in the three core subjects (FIN101, FIN102, FIN103 and FIN114 (for students enrolled before 2014).  

  • Course transition subject equivalence
    • Students who transition from a SIA/Finsia/Kaplan course and have completed the following subject within the course completion time frame may not also complete this subject:

      • E101 Interest Rate Markets and Risk Management
  • Reading list
    • There are no prescribed texts for this subject.

      Details of any required and further readings for this subject are provided in the subject room.  Purchase of any text other than a prescribed text is not required.