Course Description

Analysis of fixed income investment criteria with the goal of building and managing a diversified USD bond portfolio. Students will evaluate the macro-economic environment, specifically the outlook for monetary policy and interest rates in the economy. Students will research bonds and make recommendations for securities for investment.

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Athena Title

Fixed Income Security Analysis

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Non-Traditional Format

Includes an experiential learning project during the semester that either employs skills or knowledge learned in the course or teaches new skills or knowledge related to course objectives. The course uses experiential learning as the primary pedagogical tool for teaching course objectives. Students will be engaged in the experiential learning component for approximately 75-100% of overall instructional time.

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Prerequisite

Permission of department

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Pre or Corequisite

FINA 3000 or FINA 3000E or FINA 3000H

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Semester Course Offered

Offered fall and spring

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Grading System

A - F (Traditional)

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Student Learning Outcomes

• Students will be able to evaluate the macro economy, to interpret economic data, and to understand how the data drives monetary policy and interest rates.
• Students will be able to determine relative value in fixed income securities with the goal of selecting securities for investment.
• Students will gain practical experience through the process of security selection and performance measurement.
• Students will be able to practice skills and methods related to finance and within an experiential learning framework.
• Students will be able to actively trade a portfolio of bonds under the direct supervision of the faculty member teaching the course and the Board of Trustees of the Bond Student Managed Investment Fund. Emphasis is on student leadership and student-led decision making.
• Students will be able to report to and have frequent direct communication with the Board of Trustees of the Bond Student Managed Investment Fund, as well as the investment committee of the UGA Foundation. Students are responsible for presenting their activities to these oversight boards and must defend their investment choices.
• Students will be able to perform a full review of all positions held and develops a plan for the summer months.

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Topical Outline

• A. Introduction
• B. Macro-economic Environment and Interest Rate Strategy
• C. Bond Portfolio Diversification
• D. Overview of Fixed Income Asset Classes
• E. Fundamental Valuation in the Bond Markets
• F. Relative Valuation of Corporate Bonds
• G. Corporate Credit Analysis
• H. Portfolio Performance Evaluation

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Institutional Competencies

Analytical Thinking

The ability to reason, interpret, analyze, and solve problems from a wide array of authentic contexts.

Creativity & Innovation

The capacity to combine or synthesize existing ideas, images, or expertise in original ways and the experience of thinking, reacting, and working in an imaginative way characterized by innovation, divergent thinking, and risk taking.

Critical Thinking

The ability to pursue and comprehensively evaluate information before accepting or establishing a conclusion, decision, or action.

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