Dealing Simulation Report

A: (4 Marks)
Describe the shape and level of the current Yield Curve in Australian Commonwealth
Government Securities (ie: at the time of your dealing sessions – use data gathered
from the trading system in the FMTS, plot the curve and discuss it).
Comment on its implications for Fixed-Interest fund managers.
Based on your view of the yield curve, and other sources, what is your view on
Interest Rates in Australia for the following time horizons:
• 6 Months
• 12 Months
B: (4 Marks)
With respect to your trading portfolio:
1. Report on your Portfolio composition in Market Value Terms and Face Value
(a) At the commencement of trading
(b) After Dealing Session 2
2. What is the level of interest rate risk in your portfolio, as measured by:
(a) Portfolio Modified Duration at the commencement of trading
(b) Portfolio Modified Duration after Dealing Session 2
3. How has the interest rate risk profile of your portfolio changed? What are the
implications for your portfolio in the current yield curve environment?
4. Comment on whether you achieved your set objectives with regard to interest rate
• If you achieved your objective, what trading actions/strategy contributed to your
• If you did not achieve your objective, what would you do differently?
• Was your trading consistent with the market view developed in Part 2?
C: (2 marks)
Compare and contrast your performance from one dealing session to another. Discuss
what you could do to improve future dealing sessions. What lessons did you learn and
how did you perform as a team?


Do you want your assignment written by the best essay experts? Then look no further. Our team of experienced writers are on standby to deliver to you a quality written paper as per your specified instructions. Order Now, and enjoy an amazing discount!!

Is this question part of your Assignment?

We can help

Our aim is to help you get A+ grades on your Coursework.

We handle assignments in a multiplicity of subject areas including Admission Essays, General Essays, Case Studies, Coursework, Dissertations, Editing, Research Papers, and Research proposals

Header Button Label: Get Started NowGet Started Header Button Label: View writing samplesView writing samples