Investing in Bonds, Options, and Currencies
| **MGMT 298 | UCLA Anderson School of Management | Spring 2026** |
Professor Andrea Eisfeldt
Course Overview
This course prepares students to understand and manage investments in non-equity markets, including bonds and fixed income markets, derivatives markets such as futures and options, and international financial markets including currencies and swaps. We cover each topic from the ground up, starting with the basics and finishing with current investment strategies in each space. We discuss macro, geopolitical, and market risks, as well as relevant regulatory changes and financial innovations. Links to current events and what is happening in the real economy and financial markets will be emphasized.
This class can be a jumping off point for full-quarter classes in fixed income, international finance, and/or derivatives, but it is intended to cover the foundational material needed to be proficient in investment management on the buy or sell side of these asset classes.
Course Objectives
- Understand and price fixed income securities (bonds). Develop and analyze bond investment strategies.
- Understand and price derivative securities (futures, options, swaps). Develop and analyze option and futures trading strategies.
- Understand the fundamental and financial drivers of exchange rates. Develop and analyze currency and foreign exchange trading strategies.
Weekly Schedule
Click on the week number for readings, slides, and assignments.
| Week | Date | Topic | Quiz | Assignment Due |
|---|---|---|---|---|
| 1 | April 3 | Bonds Overview & Interest Rates | ||
| 2 | April 10 | Bond Pricing, Spreads & Duration | Quiz 1 | |
| 3 | April 17 | MBS, Corporate Bonds & FI Strategies | Quiz 2 | Individual HW 1 |
| 4 | April 24 | Derivatives: Forwards, Futures & Options Payoffs | Quiz 3 | Group Strategy Proposal 1 |
| 5 | May 1 | Option Pricing: Black-Scholes & the Greeks | Quiz 4 | |
| 6 | May 8 | Options Strategies & Structured Products | Quiz 5 | Individual HW 2 |
| 7 | May 15 | Currencies: Macro, Central Banking & BoP | Quiz 6 | Group Strategy Proposal 2 |
| 8 | May 22 | International Markets, GDP, Inflation & Rates | Quiz 7 | |
| 9 | May 29 | Carry Trades & Macro Bets | Quiz 8 | Individual HW 3 |
| 10 | June 5 | Best Idea Presentations | Group Strategy Proposal 3 |
Grading
| Component | Weight |
|---|---|
| Individual HWs (equally weighted) | 30% |
| Group Assignments (equally weighted) | 40% |
| 8 Quizzes (drop lowest 2) | 20% |
| Class Participation | 10% |
Course Materials
Required:
- Slides posted weekly prior to class
- Articles describing academic research and current events (Bloomberg, WSJ, FT, Journal of Finance, RFS, JFE, Journal of Portfolio Management, Financial Analysts Journal)
Optional Textbooks:
- Derivatives Markets by Robert M. McDonald
- International Financial Management by Geert Bekaert and Robert Hodrick
- Handbook of Fixed Income Securities by Frank Fabozzi