his course approaches investing from the perspective of institutional fixed income portfolio managers trying to capitalize on comparative advantage. It introduces a framework that fits comparative advantage into classical finance theory. It leads students through the advantages held by money managers and hedge funds, banks and insurers,GSEs, sovereign wealth funds and broker/dealers. Through case studies and industry data, the course examines how those advantages shape the investment behavior of these institutions.
To develop practical appreciation for managing a portfolio, students will use actual fixed income market offering to construct a series of portfolios appropriate to different institutions. Students will come to understand how to build a fixed income portfolio appropriate to particular institutions and how the distinct behavior of different institutions can drive pricing, liquidity and other general aspects of the fixed income markets. This course is excellent preparation for any student considering a career in fixed income or equity investment management or for students considering sales, trading or research.
Steven Abrahams is a Managing Director and Head of MBS and Securitization Research. His team provides market analysis and investment advice in residential, commercial and consumer securitized products. Steve joined Deutsche Bank in March 2010 from Citadel Investment Group, where he founded that firm's first effort to offer advice and analytics to managers of large loan and fixed-income securities portfolios. He previously was a...