The aim of this module is to equip students with a comprehensive understanding of fixed income securities — including cash and derivative instruments — their markets, yield measures, risk factors, valuation, and applications in investment and hedging. The module emphasizes the development of advanced data analytical and AI-enhanced skills through the application of industry-standard analytical tools, quantitative models, statistical techniques, and computational methods. By adopting a data analytics–oriented assessment approach using real-world financial data, students will enhance their practical problem-solving, pricing, risk management, and portfolio optimization skills, aligning closely with contemporary practices in fixed income and derivatives markets.
A. Demonstrate a systematic understanding of knowledge, and a critical awareness of, current issues in the area of professional practice related to fixed income, cash and derivative, instruments. B. Exhibit originality in applying knowledge, supported by a practical understanding of established and emerging analytical techniques — including descriptive, diagnostic, predictive, and prescriptive analytics. Students should be able to employ statistical and data-analytic models to evaluate, forecast, and manage interest rate risks in fixed income and derivative markets. C. Apply conceptual understanding to evaluate methodologies, critique them, and, where appropriate, propose new practices in the field. D. Utilize AI-supported tools alongside advanced analytical and computational techniques — including econometric analysis, Monte Carlo simulation, and statistical testing — to develop pricing models, conduct scenario analyses, perform back-testing, and carry out valuation and risk management of fixed income and derivative portfolios using real financial market data.
The module will be delivered through a combination of lectures, tutorials, and investment seminars conducted in the Trading Floor Lab. Learning will be further reinforced through guided readings from textbooks, market news articles, and industry-based, data-driven analytical reports.