Event

The lecture "Bond Markets" deals with the national and international bond markets, which are an important source of financing for companies, as well as for the public sector. After an overview of the most important bond markets, different yield definitions are discussed. Based on this, the concept of the yield curve is presented. In addition, the theoretical and empirical relationships between ratings, default probabilities and spreads are analyzed. The focus will then be on questions regarding the valuation, measurement, management and control of credit risks.

The total workload for this course is approximately 135 hours (4.5 credits).

The assessment consists of a written exam (75min.) (according to §4(2), 1 SPO). A bonus can be earned by correctly solving at least 50% of the posed bonus exercices. If the grade of the written examination is between 4.0 and 1.3, the bonus improves the grade by up to one level (0.3 or 0.4). The examination is offered in each semester and can be repeated at any regular examination date.

Students deepen their knowledge of national and international bond markets. They gain knowledge of the traded instruments and their key figures for describing default risk such as ratings, default probabilities or credit spreads.