Course in Fixed Income Markets

Here goes the call to all the number crunchers, all those wall street wannabes. When you talk finance, to put it simply, IIM Calcutta just cannot be excelled. The different courses take you through the ins and outs of audits and accounts. We make you value your assets, help you minimize the costs and plan the fund flow. At the end of the journey a company balance sheet would be worth a thousand words. An enabled corporate citizen you shall evaluate stocks, play around with the ratios and thus select your own cocktail of equity and debt instruments. As an empowered manager you shall acquire the power to turn-around any company.

Term V
Course Objective:
To acquaint students with fixed income securities - bonds and interest rate derivative products, their pricing, trading strategies, risk management, and yield curves.

Course Outline:
(1) Overview of Fixed Income Instruments
(2) Market Mechanism & Organization
(3) Bond Mathematics
(4) Yield Curve Fitting
(5) Term structure Models
(6) Portfolio Management Techniques
(7) FRAs, Caps, Floors, Bond Options & Swaptions - Valuation
(8) Convertible Bonds
(9) Callable & Puttable Bonds
(10) Credit Risk

Evaluation:
(1) Quiz - 20%
(2) End Term examination - 80%

Reading List:
(1) Fixed Income Markets & their derivatives - Sundaresan
(2) Options, Futures & other derivatives - Hull
(3) Fixed Income & Interest rate derivative analysis - Mark Britten - Jones
(4) Fixed Income Securities - Fabozzi
(5) Interest rate Option models - Rebonato.