Units

---

Sample subject outline - Semester 2 2012

Note: Subject outlines often change before the semester begins. Below is a sample outline.

Rationale

The skills of raising funds and managing interest rate risk are vital to professionals in the area of financial markets. Learning these skills requires students to practice making decisions concerning source of funds, term and duration, interest rate re-set, and risk management with derivatives. The skills are learned best through a 'hands on' approach in which real-life modelling is exploited.

Aims

The aim of the unit is to allow students to develop strong treasury management skills. The structured pedagogy of the unit allows students to develop these skills. Given the combined impact of the curriculum, students should become familiar with treasury operations.

Objectives

Course Learning Goals (Undergraduate)
The QUT Business School has established the Assurance of Learning (AoL) Goals to meet contemporary industry needs and standards. Achieving these learning outcomes will assist you to meet the desired graduate outcomes set at QUT - aligned with other internationally renowned business schools. Students will develop the following capabilities relevant to a contemporary global and sustainable business environment:

Have knowledge and skills pertinent to a particular discipline (KS)

1.1 Integrate and apply disciplinary theory and skills to practical situations
1.2 Incorporate the use of technology appropriate to the discipline and context

Be critical thinkers and effective problem solvers (CTA)

2.1 Identify, research and critically analyse information relevant to a business problem or issue, be able to synthesise that information in order to evaluate potential solutions, make recommendations or otherwise effectively address the problem or issue

Be professional communicators in an intercultural context (PC)

3.1 Communicate effectively through written tasks appropriate to varied contexts and audiences
3.2 Communicate effectively through professional oral presentations appropriate to varied contexts and audiences

Be able to work effectively in a Team Environment (TW)

4.1 Demonstrate effective team skills in order to contribute appropriately to the production of a group output

Have a Social and Ethical Understanding (SEU)

5.1 Apply ethical reasoning, standards or codes of practice relevant to the discipline and make decisions that are informed by social and cultural understanding


Unit Objectives
On completion of this unit students should be able to:
1. Understand the practicalities of day-to-day treasury operations, evidenced by their adopted treasury strategy.
2. Understand the main issues involved with treasury operations as indicated by their trading view.
3. Trade debt securities given four quarters of trading.
4. Manage a variety of risks associated with fund raising including interest rate risk, foreign currency and counterparty risks.
5. Trade and manage risk based on economic forecasts.

The specific course learning goals and unit objectives that apply to this unit are shown in the assessment section of this unit outline.

Content

Topics covered include Treasury Management, Financial Markets and Products and Interest Rate Risk management via duration and convexity.

Approaches to Teaching and Learning

It can be seen from the above that the teaching format comprises lectures on the concepts, lectures on technical/pricing issues and lectures on the application by doing the portfolio trading. The trading will be analysed and the portfolio re-positioned and the cycle starts again on a different concept applicable to treasury management.

The class is organized as a two hour lecture for three weeks followed by a two hour workshop for the remaining weeks of the semester. The semester represents four quarters of trading. The trading is undertaken by groups of students. At the completion of each quarter, groups will be given feedback about their trading. The portfolio value and cash flow position will be reviewed and re-valued.

The unit coordinator will assist in the formation of groups. It is expected that each member will contribute to group output and to ensure this, each group will have at least one member with strong presentation skills, one with strong analytical skills and one with strong computing skills. You will need to decide which of these is your area of strength so that the formation of groups can be expedited in week one.

In accordance with QUT policy, all units are to be subject to Criterion Referenced Assessment (CRA). The Unit Coordinator will provide students with further details regarding CRA during the course of the semester during class and on the unit's Blackboard site.

Assessment

Students will receive feedback in various forms throughout the semester which may include:

• Informal: worked examples, such as verbal feedback in class, personal consultation


• Formal: in writing, such as checklists (e.g. criteria sheets), written commentary


• Direct: to individual students, either in written form or in consultation


• Indirect: to the whole class

Assessment name: Mid Semester Project
Description: An analysis of the Quarter Two trading activities for the Central Treasury
Length/Duration: 1,000 words
Formative or Summative: Formative and Summative
Relates to objectives: Unit objectives: 1, 2, 3, 4, 5 and AOL goals: KS (1.1) (1.2), CTA (2.1), PC (3.1)
Weight: 10%
Internal or external: Internal
Group or individual: Group
Due date: Week 8

Assessment name: Semester Project
Description: An analysis and presentation of the trading activites for the Central Treasury for one year
Length/Duration: 2,000 words
Formative or Summative:Formative and Summative
Relates to objectives: Unit objectives: 1, 2, 3, 4, 5 and AOL goals: KS (1.1) (1.2), CTA (2.1), PC (3.1) (3.2)
Weight: 30%
Internal or external: Internal
Group or individual: Group
Due date: Week 13

Assessment name: Exam
Description: Short answer and calculation questions covering the Central treasury Game
Length/Duration: 2 hours plus 10 minutes perusal
Formative or Summative: Summative
Relates to objectives: Unit objectives: 1, 2, 3, 4, 5 and AOL goals: KS (1.1) (1.2), CTA (2.1), PC (3.1), SEU (5.1)
Weight: 60%
Internal or external: Internal
Group or individual: Individual
Due date: Central Exam Period

Academic Honesty

QUT is committed to maintaining high academic standards to protect the value of its qualifications. To assist you in assuring the academic integrity of your assessment you are encouraged to make use of the support materials and services available to help you consider and check your assessment items. Important information about the university's approach to academic integrity of assessment is on your unit Blackboard site.

A breach of academic integrity is regarded as Student Misconduct and can lead to the imposition of penalties.

Resource materials

Prescribed Text
There is no prescribed textbook for this unit.

Recommended Books

Ross, S., Thompson, S., Christensen, M., Westerfield R., Drew, M., and Jordan, B., (2011) Fundamentals of Corporate Finance, 5th edition or later, Irwin.
Peirson, Brown, Easton Pinder & Howard (2012), Business Finance, 11th edition.

Fabozzi, F.J., (2010) Bond Markets, Analysis and Strategies, Prentice Hall, 7th edition.

Bishop, S., Crapp, H., Faff, R and Twite, G; Corporate Finance, 5th edition, Holt, Rinehart and Winston, 2004.

Risk assessment statement

There are no out-of-the-ordinary risks associated with lectures or tutorials in this unit. You should, however, familiarise yourself with evacuation procedures operating in the buildings in which you attend classes and take the time to
view the Emergency video.

Disclaimer - Offer of some units is subject to viability, and information in these Unit Outlines is subject to change prior to commencement of semester.

Last modified: 05-Jul-2012