FIN251 Fixed Income Securities

The objective of this subject is to provide students with an overview of non-equity markets, with a primary focus on interest rate markets and foreign exchange markets.  This subject investigates fixed interest products and their use in wealth creation, financing and the management of interest rate risk. Students will gain an understanding of fixed interest pricing calculations and will gain an understanding of management of an interest rate portfolio. The subject will also provide students with an understanding of the role of foreign exchange rates and other assets in portfolio management.

As of Study Period 5 2018, this subject contributes to the investment analysis and financial risk management majors.

For more information, please refer to the subject outline.

  • Learning Outcomes
    • On successful completion of this subject, students should be able to:

      1. Discuss the factors that influence interest rate markets and prices.
      2. Discuss the features of short term and long term physical debt securities.
      3. Analyse fixed interest derivatives and securitized products.
      4. Compare the characteristics of Australian and international fixed interest markets, as well as understand the various government and non government debt products.
      5. Understand the features of the foreign exchange markets and assess foreign exchange products and derivatives.
      6. Evaluate non-equity financial markets and their role in portfolio management.

  • Subject Content
    • Topic Title
      Topic 1 Factors affecting interest rates
      Topic 2 Interest rate calculations and measurements
      Topic 3 Physical fixed interest securities
      Topic 4 Fixed interest derivatives and other debt products
      Topic 5 Non-government debt markets
      Topic 6 International debt markets
      Topic 7 The FX market
      Topic 8 FX borrowing and risk
      Topic 9 Portfolio management implications

  • Assessment
  • Recommend prerequisites
    • Students enrolling in this subject are assumed to have the prerequisite knowledge in the three core subjects (FIN101FIN102, FIN103). 

  • Course transition subject equivalence
    • Students are not required to complete this subject if they have transitioned from a SIA/Finsia/Kaplan course and have completed the following subjects within the course completion timeframe:
      • E101 Interest Rate Markets and Risk Management
      • FIN240 Interest Rate Markets

  • Reading List
    • There is no prescribed text for this subject. Students will be provided with key readings and access to Kaplan’s online databases. Students are encouraged to research and read widely on the topic.