FIXED INCOME INVESTMENTS - 2026/7

Module Overview

This module provides a rigorous grounding in the theory and practice of fixed income markets. Students develop the analytical skills to price bonds and interpret the relationships between prices, yields, coupon rates, and maturity, before progressing to more advanced tools including duration, convexity, spot rates, and forward rates for managing interest rate risk.

The module examines the term structure of interest rates through major theoretical frameworks and explores how credit risk is quantified and modelled using structural and reduced-form approaches. Students also gain exposure to the full landscape of fixed income markets ¿ from government and municipal bonds to corporate debt, international securities, and asset-backed products ¿ with attention to the institutional features and risk characteristics of each sector.

Weekly topics move from foundational pricing and yield analysis through to credit risk modelling, securitisation, and bond portfolio management, providing both the technical depth and market context needed for careers in investment management, fixed income analysis, and financial risk.

Module provider

Surrey Business School

Module Leader

PAPPAS Vasileios (SBS)

Number of Credits: 15

ECTS Credits: 7.5

Framework: FHEQ Level 7

Module cap (Maximum number of students): N/A

Module Availability

Semester 1

Prerequisites / Co-requisites

None.

Module content

Indicative content includes:

• Bond pricing, and the relationship between price, yield, coupon rate, and time to maturity
• Yield measures including yield to maturity, spot rates, and forward rates
• The term structure of interest rates and major theoretical frameworks
• Interest rate risk measurement using duration and convexity
• Credit risk assessment, including probability of default, recovery rates, and credit spreads
• Structural and reduced-form credit risk models
• Fixed income market sectors: Treasury, municipal, corporate, international, and securitised products
• Treasury auction mechanisms, including competitive and non-competitive bidding, and the role of primary dealers
• Bond portfolio management strategies

Assessment pattern

Alternative Assessment

Not applicable.

Assessment Strategy

The assessment strategy is designed to provide students with the opportunity to demonstrate:

The assessments are designed to assess the student's ability to distinguish, value and analyse the various types of fixed income instruments.

Thus, the summative assessment for this module consists of:

• A lab test will be held during the mid-term test week as timetabled (Covers all Learning Outcomes).
• An individual coursework (Covers all Learning Outcomes).

Formative assessment

• Online quizzes (MCQs) are provided to further develop and assess students¿ understanding in all topics covered.
• The tutorials provide an additional opportunity for students to develop their communication skills and gauge their progress.
• Suggested solutions to weekly seminar questions

Feedback

• Informal advice and discussion during lectures, activities, seminars and student feedback and consultation hours; timely response to student emails and questions prior to submission of class test and the exam.
• Individual one-to-one feedback on the mid-term class test

Module aims

• To develop a rigorous understanding of fixed income instruments and markets.
• To apply industry-standard valuation techniques to bond pricing.
• To analyse the term structure of interest rates and interest rate risk.
• To assess credit risk and its implications for bond pricing and performance.
• To evaluate fixed income securities and portfolios within institutional investment settings.

Learning outcomes

Methods of Teaching / Learning

The learning and teaching strategy is designed to:

• Develop students' knowledge of fixed income markets and their ability to analyse sovereign and corporate securities using a range of theoretical and quantitative approaches
• Engage students from diverse academic and professional backgrounds, drawing on shared experiences to enrich the learning environment
• Build students' cultural awareness, digital literacy, communication skills, and professional confidence in preparation for careers in finance

Teaching and learning methods include lectures, seminars, and independent study. Lectures combine pre-recorded material with in-person sessions to introduce key theories and frameworks across the topics outlined above. Seminars provide a more interactive setting where students work through numerical problems and discussion-based exercises, developing their ability to apply theory while building teamworking and communication skills. Independent learning is expected to involve wider reading, peer collaboration, individual research, and reflective review. Formative feedback is provided throughout the module during interactive sessions.

Indicated Lecture Hours (which may also include seminars, tutorials, workshops and other contact time) are approximate and may include in-class tests where one or more of these are an assessment on the module. In-class tests are scheduled/organised separately to taught content and will be published on to student personal timetables, where they apply to taken modules, as soon as they are finalised by central administration. This will usually be after the initial publication of the teaching timetable for the relevant semester.

Reading list

https://readinglists.surrey.ac.uk
Upon accessing the reading list, please search for the module using the module code: MANM324

Other information

Employability: The module includes a variety of authentic assessments which are aimed at developing transferable skills such as analytical, problem-solving, communication, interpersonal and professional skills, which are essential in a financial industry job. The module also embeds Bloomberg as a teaching and data analysis tool and the Bloomberg Market Concepts (BMC) certification. The module is part of the CFA Institute University Affiliation Programme which embeds elements of the CFA Institute Level 1 and 2 in our curriculum, providing students with a highly competitive edge in the job market.

Global and Cultural Capabilities: The module is taught using an interactive and inclusive approach, encouraging discussions and a questioning attitude. The student cohort spans across diverse backgrounds and nationalities, and students develop the ability to work together applying theoretical concepts to current topical world economy and financial industry issues, broadening their perspectives and interpretations.

Digital Capabilities:  Throughout the module students learn to navigate and utilise the Virtual Learning Environment, SurreyLearn, and other communication platforms such as Zoom, Teams, as well as a variety of data processing and programming software such as Excel, Mathematica, Matlab, Python, Stata (which are extensively used nowadays in the financial industry), and international data platforms such as Bloomberg and DataStream.

Please note that the information detailed within this record is accurate at the time of publishing and may be subject to change. This record contains information for the most up to date version of the programme / module for the 2026/7 academic year.