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    Fixed Income Course Outline IBA - Syllabus - BBABSAF

    Uploaded by

    Ahmed Nisar
    The document outlines a course on fixed income investments that introduces students to debt securities, their features and associated risks. Students will learn about pricing principles, yield curve transactions, and constructing pricing models to calculate returns. The goal is for students to gain expertise in managing fixed income portfolios and mitigating risk through examples from domestic and global debt markets.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Fixed Income Course Outline IBA - Syllabus - BBABSAF

    Uploaded by

    Ahmed Nisar
    92 views5 pages
    The document outlines a course on fixed income investments that introduces students to debt securities, their features and associated risks. Students will learn about pricing principles, yield curve transactions, and constructing pricing models to calculate returns. The goal is for students to gain expertise in managing fixed income portfolios and mitigating risk through examples from domestic and global debt markets.

    Original Title

    Fixed Income Course Outline IBA_Syllabus - BBABSAF (1)

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    The document outlines a course on fixed income investments that introduces students to debt securities, their features and associated risks. Students will learn about pricing principles, yield curve transactions, and constructing pricing models to calculate returns. The goal is for students to gain expertise in managing fixed income portfolios and mitigating risk through examples from domestic and global debt markets.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    92 views5 pages

    Fixed Income Course Outline IBA - Syllabus - BBABSAF

    Uploaded by

    Ahmed Nisar
    The document outlines a course on fixed income investments that introduces students to debt securities, their features and associated risks. Students will learn about pricing principles, yield curve transactions, and constructing pricing models to calculate returns. The goal is for students to gain expertise in managing fixed income portfolios and mitigating risk through examples from domestic and global debt markets.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 5

    S

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    Institute of Business Administration a
    b
    u
    s
    Fixed Income Investments
    Eraj Hashmi
    Course
    Informa ERP Class NBR   2302
    tion and  Programs  BBA/BSAF
    Title
     Class Timings and
    Class Details  
    Room
    MON TUE WED THU FRI SAT SUN
     Session Day(s)
    N N N  N N N
     Credit Hours  -
     Email [email protected]
     Contact No.  00923008225267

    Fixed Income Investments includes management of Debt Securities Portfolio, with the


    ultimate goal of coupon and capital gain income along with risk mitigation practices.
    Features of FI instruments are studied along with pricing principles and associated risks.
    Course Description The course use example of real life securities from domestic and global markets throughout.
    Participants will work with calculators to construct pricing models and calculate returns.
    Risk from fixed income transactions is studied along with an overview of yield curve
    transactions.

    Fixed Income concepts are very important to master the dynamic field of Debt Investments.
    Learning Goals
    The use of contemporary best practices and the amount of information available through
    CFA curriculum and publications on the interbank market and the market makers has
    introduced sophistication in Debt Securities Portfolio management. This course is offered
    undergraduate students. This course introduces knowledge on Fixed Income products with
    detailed insights on features and risk associated with Fixed Income Investments. Class will
    undertake short calculations in real life scenarios along with analyzing available investment
    avenues to gain expertise of the subject. Students work in class room environment using
    investment concepts to prepare, present, edit/modify, and protect their investment decisions
    in view of changing factors which influences the profitability along with interpretation of
    economic news and financial information required for intelligent investment decisions. SBP
    auctions reviews and practical knowledge on Fixed Income is the main feature of this
    course.
    Learning Outcomes
    Course Learning Outcomes mapped to Program Learning Outcomes

    Knowledge of
    Communication
    Core Business Critical Skills Ethics Global Mindset
    Learning Skills
    Areas
    Goals
    Learning
    Outcomes
    Limitations
    Understand
    Fixed Income and Risks of Global Best International
    1 Treasury
    Products Fixed Income Practices Markets
    Language
    Investments
    Fixed Income
    2
    Markets

    Presentations: Instructor designs and delivers course lectures from Presentations and real
    Teaching and Learning world exercises, as per enrolled students caliber and grip on knowledge related to
    Methodology
    investments. These Presentations and Exercises require knowledge on various treasury and
    fund management areas, products, calculations and case studies from both global and
    domestic markets.
    Teaching Facilities include, but not limited to:
     Congenial Class Environment
     White Board
     Multimedia
     Handouts ( Excerpts / Publications / Case Studies)

    Textbooks and
    Reading Materials;
     Fixed Income Securities by Pietro Veronesi
    Important Dates  Interest Rate Markets by Sidhartha Jha
     SBP Publications on Treasury Bill, Pakistan Investment Bonds, Sukuks etc.
     Regular reviews of SBP Economic Data
     IMF Country Reports on Pakistan

    Prerequisite
    Courses,
    “Fixed Income Investments” is a theoretical course with practical insights so students can
    Skills and embrace and understand working of a dealing room or treasury office. Enrolled students are
    Knowledge expected to have knowledge of basic investment and economics courses taught during their
    undergraduate university degree programs to ensure that they have grasped basic
    understanding of financial markets and investment techniques, how the roles are defined of
    all financial market participants, how numbers and data is interpreted, what factors influence
    capital markets which involves economic activities and fundamental news etc.
    Financial Newspaper reading and basic knowledge on economic data is mandatory for this
    course. Economic and Business Review - Dawn Business Section; Business Recorder; Wall
    Street Journal and Financial Times etc..

    Course Plan  Week  Topic Discussions


    Introduction to Fixed Main Financial Market Participants
    Treasury of a Commercial Bank
    Income Markets Monetary Policy – Fundamentals
     1-2
    SBP Tools - Liquidity Management
    KIBOR – Detailed Understanding
    LIBOR and Negative Interest Rates – Understanding
    Financial Markets Financial Markets Classifications
    Primary Dealers (PDs)
    Classifications Classification of Securities by Creditworthiness of Issuer
    Treasury Bills - Introduction
     3-4
    SBP T Bill Auctions – Interpretation
    Basic Concepts of Investments in Fixed Income
    Opportunity Cost of Deposit and Reserve Management - Hand Out
    Opportunity Cost of Deposit and Reserve Management -Calculations
    Monetary What is Monetary Policy
    Factors Influencing MPS
    Policy and Inflation – the important consideration in interest rate projections
    Valuations Negative Interest Rates
     5-6
    Time Path of Bond Price
    Pricing and Coupon Dates
    Days Count Conventions
    Pricing of Bonds
    Bonds – Categories of Bonds
    Pakistan Investment Bonds (PIBs)
    Features and Term Finance Certificates
    Structure Term Finance Certificates – Structure and Indenture
     7-8
    Difference between IRR and YTM
    Types of Yields
    Embedded Options
    Day Count Convention
    Interbank Market and Activities in Interbank
    Fixed Income Trading
    Mutual Funds Market Treasury Bills – Pricing
     9-10
    Capital Gain and Loss Calculations
    Mutual Fund Investments
    Categories of Mutual Funds in Pakistan
    Risk – Return Matrix of Mutual Fund Investments
    Money Market What is Monetary Policy
    Factors Influencing MPS
    Transactions Inflation – the important consideration in interest rate projections
    11-12 and Risks Associated Negative Interest Rates
    with Investing in Bonds Time Path of Bond Price
    Pricing and Coupon Dates
    Days Count Conventions
    Pricing of Bonds
    13-14 Categories of Bonds
    Bond Risk Metrics
    Pakistan Investment Bonds (PIBs)
    Term Finance Certificates
    Term Finance Certificates – Structure and Indenture
    Difference between IRR and YTM
    Types of Yields
    Embedded Options
     Week  Topic Discussions
    Day Count Convention
    Recap and Review of Activities in Interbank
    Fixed Income Trading
    Course Market Treasury Bills – Pricing
     15 Capital Gain and Loss Calculations
    Mutual Fund Investments
    Categories of Mutual Funds in Pakistan
    Risk – Return Matrix of Mutual Fund Investments

    Electronic Resources: www. Investopedia.com, www.cfaforum.com, IBA LMS

    Calendar: As per IBA policy

    Category Weight

    Required Assignment  Weightage


    Mid Term 30 %
    Finals 50%
    Class Participation 10%
    Assignments 10%

    Grading Scale:
    Points Grade
    92.5 A
    86.5 A-
    81.5 B+
    76.5 B
    71.5 B-
    67.5 C+
    63.5 C
    59.5 C-
    0 F

    Policy - Attendance: As per the IBA Policy – Late coming is not permissible

    Policy - Assignments: Assignments are accepted within due date

    Policy - Cell phones


    Not allowed in Class
    and pagers:

    Policy - Academic No cheating or plagiarism is allowed


    Honesty:
    Should be hand written or printouts
    Policy - Written Work:
    Policy - Late Assignments:
    Deduction of Marks

    Policy - Participation: Class participation has significant impact on overall grade

    Policy - Students with


    Equal Treatment with special consideration
    Disabilities:

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