Debt Capital Markets (ECFS886)

This unit applies the principles outlined in Portfolio Management and Valuation (AFCP801) and Financial Instruments (ECFS867) to the process of debt capital raisings within Australian, US and Asian markets. The unit aims to provide the student with a perspective on the development of debt capital markets, a theoretical understanding of the issues and a sense of the practical aspects and mechanics of executing a debt capital market transaction. This unit covers all short and term debt markets, securitisation and credit derivatives.

Learning Outcomes:

  1. Explain the different debt markets in Australia, USA, Europe and Asia, including key players, issues and trends.
  2. Compare the major types of debt capital transactions, including short and long term debt, securitisation and credit derivatives.
  3. Analyse a company’s requirements and determine appropriate debt capital markets funding options in light of internal (including issuer’s motivation) and external (including current market conditions) considerations.
  4. Describe all major types of debt capital transactions covered in the unit, by demonstrating an understanding of all related requirements including rating agency process, legal documentation, pricing and settlement mechanisms and post issue risk management.
  5. Describe the process of securitisation and explain its use in a contemporary context.
  6. Describe a credit derivative and explain the various uses of this instrument.
  7. Describe the way that capital markets are evolving with reference contemporary practice.


  1. Overview and Objectives
  2. Developmental History of Debt Capital Markets
  3. Detailed Elements Within Debt Securities Markets
  4. Debt Securities In Depth
  5. Pricing Signals and Hedging Instruments for Debt Obligations

Prerequisite Units:


Unit Guides:

  • Debt Capital Markets - Sydney and Melbourne 2018. The link will provide a list of guides for this unit. If the desired term/location is not listed, please view the latest one available.
  • Debt Capital Markets - Beijing 2018.

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