This course will  begin by analysing the theory and practice of financial intermediation,  broadly construed to include banks, savings institutions and  investment/merchant banks. Topics will include the role of banking firms  in a developed capital market, their impact on corporate financial  decisions and the regulation of banks. The course will then narrow its  focus to provide a comprehensive analysis the role of financial  intermediaries in the development of fixed-income markets and will also  provide an introduction to the valuation of fixed income securities. We  shall discuss the institutional structure of the fixed income markets  and the role they play in: (1) portfolio management; and (2) risk  management of financial intermediaries.

On completion of this course students should understand and be able to apply the processes and applications outlined in the course description.

Assessment in the course is based on a major project, mid-semester examination and final examination

At least three contact hours per week (2 lectures and 1 tutorial) plus private study time.

At least a 65% average in the final 2 years of an Australian Bachelor degree, or international equivalent.

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This course is only recommended for students undertaking advanced Finance studies such as the 2nd year of the Master of Finance or Master of Commerce. Students undertaking the Master of Financial Management or the Master of Business, or the first year of the Master of Finance or Master of Commerce, should instead take FINM7009 Financial Policy and Corporate Strategy.

See Course Website