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Johns Hopkins University | EN.550.445

Interest Rate and Credit Derivatives

4.0

credits

Average Course Rating

(3.9)

Advances in corporate finance, investment practice and the capital markets have been driven by the development of a mathematically rigorous theory for financial instruments and the markets in which they trade. This course builds on the concepts, techniques, instruments and markets introduced in EN.550.444. In addition to new topics in credit enhancement and structured securities, the focus is expanded to include applications in portfolio theory and risk management, and covers some numerical and computational approaches.

Spring 2013

(3.89)

Spring 2014

(3.67)

Spring 2015

(4.13)

Spring 2013

Professor: David Audley

(3.89)

16 The best aspects of this course included the coverage of different topics on credit and interest rate derivatives. Also, the use of Excel spreadsheets for practical purposes was helpful to the class. Some students felt that they didn’t receive enough feedback from the instructor. One suggestion was to change up the lecture format from day to day to hold students’ attention. Another suggestion was to incorporate more hands-on work. Prospective students should read Hul ’s textbook in advance if possible; it would make the lectures a lot more comprehensible.

Spring 2014

Professor: David Audley

(3.67)

The highlights of this course were the introduction to the topic, the usefulness of the information, and an engaging and approachable instructor. The worst aspects were the dry lectures and the difficult homework. Giving more time and instruction on the second half of the class (spreadsheets) was the most common suggestion for improvement. Prospective students should know the workload is manageable, the pace of the course is rather fast, and in order to master specific parts of the course you wil need to study independently of the class.

Spring 2015

Professor: Davis Audley

(4.13)

Students appreciated the clear details that the professor gave about what to expect on exams, and the review sessions before tests. Further, students found that the material was interesting and useful in a 15number of areas outside of class. Students felt that the TA was not helpful and did not understand the course subject matter. Many students also felt that the lectures were boring and that the professor read directly from PowerPoint slides. Suggestions for improvement included having more interactive lectures and more opportunities to apply theories learned. Prospective students should be prepared for a significant work load and be familiar with finance.