EFN517 Fixed Income and Alternative Investments
To view more information for this unit, select Unit Outline from the list below. Please note the teaching period for which the Unit Outline is relevant.
| Unit code: | EFN517 |
|---|---|
| Prerequisite(s): | EFN412 |
| Equivalent(s): | EFN515 |
| Credit points: | 12 |
| Timetable | Details in HiQ, if available |
| Availabilities |
|
| Domestic tuition unit fee | $4,416 |
| International unit fee | $4,944 |
Unit Outline: Semester 2 2025, Gardens Point, Internal
| Unit code: | EFN517 |
|---|---|
| Credit points: | 12 |
| Pre-requisite: | EFN412 |
| Equivalent: | EFN515 |
| Assumed Knowledge: | Nil |
| Coordinator: | Stephen Thiele | sr.thiele@qut.edu.au |
Overview
This unit has an applied focus with an emphasis on investigating real world investment practice and problems, while working with real datasets. This is an intermediate level finance unit which builds on the theory and practice covered in introductory units. In this unit, students will develop a deeper understanding of fixed income securities, along with strategies for portfolio management, and technical skills for managing their risk. Students will also gain an understanding of alternative assets that extend beyond the traditional focus on equities and fixed income to real estate, commodities, and hedge funds.
Learning Outcomes
On successful completion of this unit you will be able to:
- Analyse economic and financial problems and apply appropriate problems solving techniques.
- Apply technical knowledge, technical skills and judgement to solve pricing and portfolio problems.
- Apply knowledge of the limitations of simple analytical modelling and of the ways in which this approach can be elaborated using advanced statistical techniques.
- Produce and communicate analyses and recommendations
Content
Part A: Fixed Income Securities
- Introduction and Review.
- Fixed Income securities - Types and Characteristics of Government Bonds, Corporate Bonds, Debentures, unsecured notes, Junk Bonds. Mortgage-backed securities. Markets and benchmarks.
- Fixed Interest valuation.
- Term Structure of Interest Rates.
- Credit Risk.
- Bonds with embedded options; convertibles, hybrids, structured products.
- Interest Rate Derivatives (Options, Futures, Swaps); Managing Interest Rate Risk. Duration and Immunization.
- Managing a debt portfolio, Fixed income portfolio strategies.
Part B: Alternative Investments
- Hedge Funds.
- Venture Capital.
- Private equity.
- Real estate, Commercial property, and Listed Property Funds (REITs).
- Distressed Securities/Bankruptcies.
- Commodity markets.
- Alternative Investment Management Strategies.
Learning Approaches
With the primary focus on problem solving and the practical application of knowledge and skills students explore key concepts and techniques in lectures and practice these in tutorials. Students also work with Excel and have opportunities to analyse and discuss their learning experiences with reference to real world pricing and portfolio issues and problems.
In accordance with QUT policy, all units are to be subject to Criterion Referenced Assessment (CRA). The unit coordinator will provide students with further details regarding CRA during the semester during class and on the unit's Canvas site.
COVID-19 restrictions may require changes to the planned Learning Approaches described here. Students should refer to the unit Canvas site for the latest information.
Feedback on Learning and Assessment
Students will receive feedback in various forms throughout the semester which may include:
- Informal: worked examples, such as verbal feedback in class, personal consultation
- Formal: in writing, such as checklists (e.g. criteria sheets), written commentary
- Direct: to individual students, either in written form or in consultation
- Indirect: to the whole class
Assessment
Overview
The assessment in this unit aims to support your achievement of the unit learning outcomes and course assurance of learning goals. The assessment has been designed to allow you to:
- receive feedback on your learning as you progress toward the development of knowledge, understanding, skills and attitudes (formative assessment);
- demonstrate your learning to achieve a final grade (summative assessment).
Unit Grading Scheme
7- point scale
Assessment Tasks
Assessment: Mid Semester Exam
Multiple Choice, Calculation, and Short Answers. Covering Weeks 1-6
Business Capabilities (AOL goals) KS1.1, KS1.2 and HO2.1
Formative and Summative
Assessment: Treasury Portfolio Management Project
Acting as a portfolio manager, you will analyse and evaluate data sets to construct, manage and evaluate a debt portfolio. You will perform your calculations and analysis in Excel (20 marks) and produce a written report for senior treasury management in Word (10 marks).
This assignment is eligible for the 48-hour late submission period and assignment extensions.
Business Capabilities (AOL goals) KS1.2, HO2.1, HO2.2, PC3.1
Formative and Summative.
Assessment: Final Exam
The end of Semester exam will assess your basic knowledge and analysis of fixed income and alternative investments. The exam will consist of short answer, calculation, and essay questions.
Business Capabilities (AOL goals) KS1.1, HO2.1, HO2.2
Summative.
Academic Integrity
Academic integrity is a commitment to undertaking academic work and assessment in a manner that is ethical, fair, honest, respectful and accountable.
The Academic Integrity Policy sets out the range of conduct that can be a failure to maintain the standards of academic integrity. This includes, cheating in exams, plagiarism, self-plagiarism, collusion and contract cheating. It also includes providing fraudulent or altered documentation in support of an academic concession application, for example an assignment extension or a deferred exam.
You are encouraged to make use of QUT’s learning support services, resources and tools to assure the academic integrity of your assessment. This includes the use of text matching software that may be available to assist with self-assessing your academic integrity as part of the assessment submission process.
Breaching QUT’s Academic Integrity Policy or engaging in conduct that may defeat or compromise the purpose of assessment can lead to a finding of student misconduct (Code of Conduct – Student) and result in the imposition of penalties under the Management of Student Misconduct Policy, ranging from a grade reduction to exclusion from QUT.
Requirements to Study
Requirements
No additional requirements.
Costs
No additional costs.
Resources
This unit will include a prescribed text and a reading list.
Resource Materials
Other
Weekly readings to be advised
Risk Assessment Statement
There are no out-of-the-ordinary risks associated with lectures or tutorials in this unit. You should, however, familiarise yourself with evacuation procedures operating in the buildings in which you attend classes and take the time to
view the Emergency video.
Unit Outline: Semester 2 2025, Online
| Unit code: | EFN517 |
|---|---|
| Credit points: | 12 |
| Pre-requisite: | EFN412 |
| Equivalent: | EFN515 |
| Assumed Knowledge: | Nil |
Overview
This unit has an applied focus with an emphasis on investigating real world investment practice and problems, while working with real datasets. This is an intermediate level finance unit which builds on the theory and practice covered in introductory units. In this unit, students will develop a deeper understanding of fixed income securities, along with strategies for portfolio management, and technical skills for managing their risk. Students will also gain an understanding of alternative assets that extend beyond the traditional focus on equities and fixed income to real estate, commodities, and hedge funds.
Learning Outcomes
On successful completion of this unit you will be able to:
- Analyse economic and financial problems and apply appropriate problems solving techniques.
- Apply technical knowledge, technical skills and judgement to solve pricing and portfolio problems.
- Apply knowledge of the limitations of simple analytical modelling and of the ways in which this approach can be elaborated using advanced statistical techniques.
- Produce and communicate analyses and recommendations
Content
Part A: Fixed Income Securities
- Introduction and Review.
- Fixed Income securities - Types and Characteristics of Government Bonds, Corporate Bonds, Debentures, unsecured notes, Junk Bonds. Mortgage-backed securities. Markets and benchmarks.
- Fixed Interest valuation.
- Term Structure of Interest Rates.
- Credit Risk.
- Bonds with embedded options; convertibles, hybrids, structured products.
- Interest Rate Derivatives (Options, Futures, Swaps); Managing Interest Rate Risk. Duration and Immunization.
- Managing a debt portfolio, Fixed income portfolio strategies.
Part B: Alternative Investments
- Hedge Funds.
- Venture Capital.
- Private equity.
- Real estate, Commercial property, and Listed Property Funds (REITs).
- Distressed Securities/Bankruptcies.
- Commodity markets.
- Alternative Investment Management Strategies.
Learning Approaches
With the primary focus on problem solving and the practical application of knowledge and skills students explore key concepts and techniques in lectures and practice these in tutorials. Students also work with Excel and have opportunities to analyse and discuss their learning experiences with reference to real world pricing and portfolio issues and problems.
In accordance with QUT policy, all units are to be subject to Criterion Referenced Assessment (CRA). The unit coordinator will provide students with further details regarding CRA during the semester during class and on the unit's Canvas site.
COVID-19 restrictions may require changes to the planned Learning Approaches described here. Students should refer to the unit Canvas site for the latest information.
Feedback on Learning and Assessment
Students will receive feedback in various forms throughout the semester which may include:
- Informal: worked examples, such as verbal feedback in class, personal consultation
- Formal: in writing, such as checklists (e.g. criteria sheets), written commentary
- Direct: to individual students, either in written form or in consultation
- Indirect: to the whole class
Assessment
Overview
The assessment in this unit aims to support your achievement of the unit learning outcomes and course assurance of learning goals. The assessment has been designed to allow you to:
- receive feedback on your learning as you progress toward the development of knowledge, understanding, skills and attitudes (formative assessment);
- demonstrate your learning to achieve a final grade (summative assessment).
Unit Grading Scheme
7- point scale
Assessment Tasks
Assessment: Mid Semester Exam
Multiple Choice, Calculation, and Short Answers. Covering Weeks 1-6
Business Capabilities (AOL goals) KS1.1, KS1.2 and HO2.1
Formative and Summative
Assessment: Treasury Portfolio Management Project
Acting as a portfolio manager, you will analyse and evaluate data sets to construct, manage and evaluate a debt portfolio. You will perform your calculations and analysis in Excel (20 marks) and produce a written report for senior treasury management in Word (10 marks).
This assignment is eligible for the 48-hour late submission period and assignment extensions.
Business Capabilities (AOL goals) KS1.2, HO2.1, HO2.2, PC3.1
Formative and Summative.
Assessment: Final Exam
The end of Semester exam will assess your basic knowledge and analysis of fixed income and alternative investments. The exam will consist of short answer, calculation, and essay questions.
Business Capabilities (AOL goals) KS1.1, HO2.1, HO2.2
Summative.
Academic Integrity
Academic integrity is a commitment to undertaking academic work and assessment in a manner that is ethical, fair, honest, respectful and accountable.
The Academic Integrity Policy sets out the range of conduct that can be a failure to maintain the standards of academic integrity. This includes, cheating in exams, plagiarism, self-plagiarism, collusion and contract cheating. It also includes providing fraudulent or altered documentation in support of an academic concession application, for example an assignment extension or a deferred exam.
You are encouraged to make use of QUT’s learning support services, resources and tools to assure the academic integrity of your assessment. This includes the use of text matching software that may be available to assist with self-assessing your academic integrity as part of the assessment submission process.
Breaching QUT’s Academic Integrity Policy or engaging in conduct that may defeat or compromise the purpose of assessment can lead to a finding of student misconduct (Code of Conduct – Student) and result in the imposition of penalties under the Management of Student Misconduct Policy, ranging from a grade reduction to exclusion from QUT.
Requirements to Study
Requirements
No additional requirements.
Costs
No additional costs.
Resources
This unit will include a prescribed text and a reading list.
Resource Materials
Other
Weekly readings to be advised
Risk Assessment Statement
There are no out-of-the-ordinary risks associated with lectures or tutorials in this unit. You should, however, familiarise yourself with evacuation procedures operating in the buildings in which you attend classes and take the time to
view the Emergency video.