FIN251 Fixed Income Securities

This subject provides an overview of non-equity markets, with a primary focus on interest rate markets and foreign exchange markets. It investigates fixed interest products and their use in wealth creation, financing and the management of interest rate risk. Fixed interest pricing calculations are also discussed, along with the management of an interest rate portfolio. This subject lastly examines the role of foreign exchange rates and other assets in portfolio management. Students apply this knowledge via critical analysis of journal articles, and analysis of a company in a fictional case study.

For more information, please refer to the subject outline.

  • Learning Outcomes
    • On successful completion of this subject, individuals 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

  • Duration
    • The duration of this subject is one study period (12 weeks).

  • Assessment
  • Prerequisites
    • There are no prerequisites for this subject. However, individuals should review the ‘Assumed Knowledge’ tab to understand the prior knowledge Kaplan advises they should hold before enrolling in this subject.

  • Assumed knowledge
    • Whilst there are no prerequisites for this subject, Kaplan assumes that individuals have completed FIN206 Investment Management, or understand the content covered in this subject, prior to undertaking FIN251 Fixed Income Securities.

  • Course transition subject equivalence
    • Individuals may not be required to complete this subject if they have transitioned from a SIA/Finsia/Kaplan course and have completed the following subjects:

      • E101 Interest Rate Markets and Risk Management
      • FIN240 Interest Rate Markets
  • Reading List
    • There is no prescribed text for this subject.

      Individuals are provided with key readings and access to Kaplan’s online databases. Individuals are encouraged to research and read widely on the topic.