FNCE 3171: Fixed Income and Alternative Investments
Students learn to design and analyze fixed income securities and alternative investments. The importance of interest rates, credit risk, and product features in the valuation of these assets is emphasized. Topics include an introduction to fixed income investments, fixed income markets, yield curves, bond pricing, valuation and volatility, credit analysis for firms and individuals, asset-backed securities, real estate, hedge funds and private equity.
Learning outcomes
- Examine and describe various types and structures of debt instruments.
- Differentiate between different types of bond issuers.
- Interpret quantitative measures including price, yield to maturity, and duration for various fixed income securities.
- Examine the risk-return characteristics of fixed income securities.
- Apply the 4 Cs (capacity, collateral, covenants and character) of credit analysis.
- Explain how asset-backed securities are created.
- Contrast alternative investment asset classes versus traditional stock and bond investments and their roles in a portfolio.
- Estimate the value of a real estate investment using various methods.
- Contrast different private equity and hedge fund strategies, fees, structures and benchmarks.
Course topics
- Module 1: Defining Features of Fixed Income Securities
- Module 2: Fixed Income Markets
- Module 3: Fixed Income Valuation
- Module 4: Risk and Return
- Module 5: Fundamentals of Credit Analysis
- Module 6: Asset Backed Securities
- Module 7: Alternative Asset Classes
- Module 8: Real Estate
- Module 9: Hedge Funds
- Module 10: Private Equity
Required text and materials
Students require the following e-textbook, which can be purchased directly from the TRU bookstore site at: https://thebookstore.tru.ca/site_digital.asp
- CFA Institute, Chambers, D. R., Anson, M. J. P., Black, K. H., Kazemi, H. B., & CAIA Association. (2023). Fixed Income and Alternative Investments for Thompson Rivers University. John Wiley & Sons, Inc.
Type: Custom E-textbook: ISBN: 9781394240647
This custom e-textbook contains chapters from:
- Donald R. Chambers, Mark J. P. Anson, Keith H. Black, Hossein Kazemi. (2020). Alternative Investments: CAIA Level I, (4th ed.). CAIA Association.
Type: E-Textbook. ISBN: 978-1-119-60415-0
- Jerald E. Pinto, Barbara Petitt, and Wendy L. Pirie. (2022). Fixed Income Analysis, (5th ed.). CFA Institute.
Type: E-Textbook. ISBN: 978-1119-85054-0
Assessments
Please be aware that should your course have a final exam, you are responsible for the fee to the online proctoring service, ProctorU, or to the in-person approved Testing Centre. Please contact exams@tru.ca with any questions about this.
To successfully complete this course, students must achieve a passing grade of 50% or higher on the overall course and 50% or higher on the mandatory final exam.
| Assignment 1: Fixed-Income Securities, Markets and Valuation | 15% |
| Assignment 2: Fixed-Income Risk and Return, Credit Analysis and Asset-Backed Securities | 15% |
|
Assignment 3: Proposal and Research Paper |
10% |
| Mandatory Final Exam | 40% |
| Total | 100% |
Open Learning Faculty Member Information
An Open Learning Faculty Member is available to assist students. Students will receive the necessary contact information at the start of the course.
