Content, progress and pedagogy of the module

The module introduces fundamental concepts of bond markets before progressing to advanced topics, ensuring accessibility regardless of prior finance background. The course connects traditional fixed income analysis with emerging themes in sustainable and climate finance, preparing students to understand how debt markets contribute to the financing of environmental and social transitions.

Learning objectives

Knowledge

The objective is that the student after the module possesses the necessary knowledge on: 

• the role of debt financing instruments (sovereign and corporate bonds) in modern financial systems and sustainable development,
• how interest rate dynamics, credit risk, and ESG factors affect the valuation of debt instruments,
• traditional and green/sustainability-linked bond markets and the main frameworks (e.g., ICMA Green Bond Principles, EU Taxonomy, and TCFD).

Skills

The objective is that the student after the module possesses the necessary skills to: 

• construct and interpret yield curves and bond prices using market data;
• evaluate the pricing and risk profile of various bonds and debt derivatives under both conventional and ESG-integrated approaches,
• analyze case studies where debt markets contribute to the financing of sustainability transitions (climate, social, and governance objectives).

Competences

The objective is that the student after the module possesses the necessary competences to: 

• apply fixed-income valuation and risk-management techniques to sustainable debt instruments,
• evaluate the implications of sustainability reporting, covenant design, and investor preferences for debt financing,
• critically reflect on the balance between financial return, risk, and sustainability objectives in debt markets.

Type of instruction

For information see § 17.

Exam

Exams