FIXED INCOME INVESTMENT - 2017/8

Module code: MANM324

Module provider

Surrey Business School

Module Leader

MASON A Dr (SBS)

Number of Credits

15

ECT Credits

7.5

Framework

FHEQ Level 7

JACs code

N321

Module cap (Maximum number of students)

N/A

Module Availability

Semester 1

Overall student workload

Lecture Hours: 32

Assessment pattern

Assessment type Unit of assessment Weighting
School-timetabled exam/test CLASS TEST 30
Coursework BLOOMBERG MARKET CONCEPT TRAINING 20
Examination 1.5H CLOSED BOOK EXAMINATION 50

Alternative Assessment

Not applicable.

Prerequisites / Co-requisites

None.

Module overview

The module studies the various approaches to Fixed Income Investment, providing a systematic understanding of the challenges faced and the decisions to be taken when analysing and valuing fixed income securities and when managing bond portfolios. It encompasses the principles and practice of valuation of Treasury Securities and corporate bonds. This is approached from several different aspects including pricing of bonds, factors affecting bond prices, bond portfolio management strategies and bond performance evaluation. This module is particularly useful for students considering a career in finance; investment management, investment banking, private equity or venture capital, but is also useful for those involved in other areas of corporate management where knowledge of investment analysis and company valuation is important.

Module aims

The aim of the module is to provide the student with the ability to critically evaluate the different approaches to the valuation of bonds and the risks associated with different types of bond investments. This enables the student to select the approach or combination of approaches which will yield the most suitable fixed income securities in line with their risk-return profile The module will extend this analysis to included bond price volatility, factors affecting bond yields and the differences between treasury securities and corporate bonds; thus empowering the student to select fixed income securities which meet their investment objectives.

Learning outcomes

Attributes Developed
Understand and be able to evaluate the key areas of the fixed income securities markets, how different securities are priced and the factors which affect the risk and return on those securities.
Possess the skills to deal with complex issues systematically and make sound analytical judgements on the value of fixed income securities.
Be able to critically evaluate the opportunities provided by different types of fixed income securities using the appropriate methods of analysis.
Be able to analyse a range of valuation methodologies and comparative and relative valuation techniques.
Possess the ability to determine the factors affecting bond yields and the term structure of interest rates.
Be able to use Bloomberg as an investment tool.

Attributes Developed

C - Cognitive/analytical

K - Subject knowledge

T - Transferable skills

P - Professional/Practical skills

Module content

Indicative content includes:


Overview of Fixed Income Investment
Treasury Securities
Pricing of Bonds
Bond Pricing Volatility
Measuring Yield
Factors Affecting Bond Yields
Corporate Bonds

Methods of Teaching / Learning


The learning and teaching strategy is designed to:

The teaching and learning strategy is designed to facilitate students understanding of applied finance; how to analyse real fixed income securities, both Sovereign and corporate using a range of theoretical approaches.

The learning and teaching methods include:

The teaching and learning methods includes lectures to establish key principles, seminars to focus on practical application and the use of SurreyLearn to facilitate discussion and distribution of additional materials and data sources. 

ELearning via Bloomberg will be used to reinforce key market concepts.  Additional resources such as DataStream will be used where appropriate.

Lectures will comprise 2 hours per week for 11 weeks plus 1 hour per week of seminars.

Assessment Strategy


The assessment strategy is designed to provide students with the opportunity to demonstrate


Knowledge of the role of fixed income investment analysis and portfolio management strategies and how to apply the appropriate methods of analysis in order to critically evaluate the financial opportunities offered by fixed income investments.


Thus, the summative assessment for this module consists of:


Bloomberg Market Concepts (BMC) e-learning course modules: Fixed Income and Currencies. Completion by week 5.

Closed book class test 50 minutes based on the first 4 weeks lectures to be held in week 7

A 1 1/2 hour closed book exam covering all topics will be held at the end of the module.


Formative assessment and feedback

Students will receive oral feedback during seminars.

Feedback and guidance will be given via SurreyLearn throughout the module.

The class test provides feedback on theoretical underpinnings and typical calculations giving students an early indication where more work may be required.

Reading list

Reading list for FIXED INCOME INVESTMENT : http://aspire.surrey.ac.uk/modules/manm324

Programmes this module appears in

Programme Semester Classification Qualifying conditions
Investment Management MSc 1 Compulsory A weighted aggregate mark of 50% is required to pass the module

Please note that the information detailed within this record is accurate at the time of publishing and may be subject to change. This record contains information for the most up to date version of the programme / module for the 2017/8 academic year.