FNCE90047 Financial Markets and Instruments
The Complete Exam Bible · SM2 2026FNCE90047 Overview
- Faculty of Business and Economics
- Semester 2, 2026
- a postgraduate finance subject
- 12.5 credit points
- a financial-markets and instruments subject
FNCE90047 covers financial systems and regulation, capital raising, equity trading, funds and ETFs, fixed income, banks, mortgages and securitisation, FX, derivatives, insurance and CDS. It is taught within Faculty of Business and Economics. It is a postgraduate finance subject. It carries 12.5 credit points.
- Trace the claim Every instrument specifies who owes what, when and with what priority.
- Liquidity is conditional An asset may trade normally until funding or dealer balance-sheet capacity disappears.
- Intermediation transforms risk Banks and funds redistribute maturity, liquidity, credit and market exposure rather than eliminating it.
- The final is 70% The current guide publishes a three-hour final and no separate component hurdle.
How FNCE90047 is assessed
| Component | Weight | Format |
|---|---|---|
| 4,000-word Group Assignment | 30% | Due Thursday 24 September 2026 at 6:00 pm; normally groups of 5-6 |
| End-of-semester Examination | 70% | Three hours during the examination period |
Current assessment is a 4,000-word group assignment worth 30%, normally in groups of 5-6, due Thursday 24 September 2026 at 6:00 pm, plus a three-hour end-of-semester examination worth 70%. No separate numeric component hurdle is published in the guide.
Current FNCE90047 dates
| Date | Item | Control |
|---|---|---|
| 24 September 2026 at 6:00 pm | Group Assignment | 30%, 4,000 words, normally groups of 5-6. |
| Official examination period | End-of-semester Examination | 70%, three hours. |
Dates are as published in the current course materials. Confirm exact deadlines and submission settings in the live LMS.
What FNCE90047 covers
Read Financial Systems, Regulation and Critical Thinking as the foundation, Fixed-Income Markets and Yield Risk as the main change in method, and Insurance, Credit Default Swaps and Risk Transfer as the final application of the course.
Financial Systems, Regulation and Critical Thinking
financial system · systemic risk · regulatory perimeter · connect a financial claim to institutions, regulation and system functionDefine financial system
The course material gives this chapter a concrete anchor: Week 1 explicitly combines the financial system, regulation and critical thinking.
- financial system
- systemic risk
- regulatory perimeter
- Applying financial system
- Limits of systemic risk and regulatory perimeter
Public and Private Capital Raising
primary market · private placement · underpricing · compare issuance routes, dilution, disclosure, pricing and controlDefine primary market
The course material gives this chapter a concrete anchor: Week 2 focuses on public and private capital raising with a current worked problem set.
- primary market
- private placement
- underpricing
- Applying primary market
- Limits of private placement and underpricing
Equity Markets, Orders and Trading
limit order · bid-ask spread · market liquidity · interpret the order book and execution costsDefine limit order
The course material gives this chapter a concrete anchor: Week 3 covers equity markets and trading.
- limit order
- bid-ask spread
- market liquidity
- Applying limit order
- Limits of bid-ask spread and market liquidity
Managed Funds, Superannuation and Research
managed fund · net asset value · benchmark · compare fund exposure, fees, governance and benchmarkDefine managed fund
The course material gives this chapter a concrete anchor: Week 4 covers funds, superfunds and research houses.
- managed fund
- net asset value
- benchmark
- Applying managed fund
- Limits of net asset value and benchmark
Active, Index and ETF Investment Products
active management · index fund · exchange-traded fund · distinguish benchmark exposure, tracking, liquidity, tax and active riskDefine active management
The course material gives this chapter a concrete anchor: Week 5 compares active and index approaches, ETFs and asset consultants.
- active management
- index fund
- exchange-traded fund
- Applying active management
- Limits of index fund and exchange-traded fund
Fixed-Income Markets and Yield Risk
fixed-income security · yield to maturity · duration · price debt cash flows and estimate rate exposureDefine fixed-income security
The course material gives this chapter a concrete anchor: Week 6 covers fixed-income markets across the guide's assigned chapters.
- fixed-income security
- yield to maturity
- duration
- Applying fixed-income security
- Limits of yield to maturity and duration
Banking and Financial Intermediaries
intermediation · liquidity coverage · bank run · trace bank balance-sheet cash flows through a funding shockDefine intermediation
The course material gives this chapter a concrete anchor: Week 7 covers banks and uses the SVB case.
- intermediation
- liquidity coverage
- bank run
- Applying intermediation
- Limits of liquidity coverage and bank run
Mortgages and Securitisation
mortgage · securitisation · tranche · trace borrower payments, prepayment, default and tranche priorityDefine mortgage
The course material gives this chapter a concrete anchor: Week 8 covers mortgages and securitisation with the AIG case.
- mortgage
- securitisation
- tranche
- Applying mortgage
- Limits of securitisation and tranche
FX Markets and Capital Flows
spot exchange rate · forward rate · capital flow · convert and hedge foreign cash flows while preserving quote directionDefine spot exchange rate
The course material gives this chapter a concrete anchor: Week 9 covers foreign exchange and global capital flows.
- spot exchange rate
- forward rate
- capital flow
- Applying spot exchange rate
- Limits of forward rate and capital flow
Derivatives and Risk Management
derivative · hedge · basis risk · choose derivative direction and size for a named riskDefine derivative
The course material gives this chapter a concrete anchor: Week 10 covers derivatives and risk management and revisits SVB.
- derivative
- hedge
- basis risk
- Applying derivative
- Limits of hedge and basis risk
Insurance, Credit Default Swaps and Risk Transfer
insurance premium · credit default swap · moral hazard · compare insured risk, CDS protection, incentives and counterparty exposureDefine insurance premium
The course material gives this chapter a concrete anchor: Week 11 covers insurance and CDS with the AIG case.
- insurance premium
- credit default swap
- moral hazard
- Applying insurance premium
- Limits of credit default swap and moral hazard
It is positioned as a financial-markets and instruments subject.
Institution, instrument and market mechanics are integrated through cases and a comprehensive 70% examination rather than taught as isolated product definitions.
Assessment in fnce90047 is distributed as follows: a 30% 4,000-word group assignment and a 70% three-hour end-of-semester examination
The operational assessment conditions matter here.
A three-hour individual examination worth 70% is held during the official examination period.
What makes fnce90047 demanding is concrete: linking security cash flows and pricing to the balance-sheet, market-structure, liquidity, incentive and regulatory mechanism that makes those claims viable or fragile
The current S2 subject guide does not publish a separate numeric component hurdle; the overall subject pass standard applies.
For enrolment planning, Confirm current eligibility in the University Handbook.
Read Financial Systems, Regulation and Critical Thinking as the foundation, Fixed-Income Markets and Yield Risk as the main change in method, and Insurance, Credit Default Swaps and Risk Transfer as the final application of the course.
Worked example · free
Stress a bank funding model
- 1Map deposit and mortgage contractual claims.
- 1Identify maturity and liquidity transformation.
- 1Trace cash need into reserves, borrowing or asset sale.
- 1Stress sale prices and funding spreads.
- 1State capital, liquidity and conduct controls.
Key terms
- financial system
- Markets, intermediaries, instruments and infrastructure coordinating saving, investment and risk. This chapter uses the concept when students connect a financial claim to institutions, regulation and system function.
- systemic risk
- Risk that distress or disruption impairs broad financial-system function. It helps explain the reasoning required to connect a financial claim to institutions, regulation and system function.
- regulatory perimeter
- Boundary determining which activities and entities fall under specified oversight. Its limit matters because formal compliance does not establish economic resilience or fair outcomes.
- primary market
- Market in which issuers sell newly created securities to raise funds. This chapter uses the concept when students compare issuance routes, dilution, disclosure, pricing and control.
- private placement
- Security issuance to a limited investor group under applicable rules. It helps explain the reasoning required to compare issuance routes, dilution, disclosure, pricing and control.
- underpricing
- Positive initial market return relative to an offering price. Its limit matters because observed first-day return does not by itself prove an offering was deliberately mispriced.
- limit order
- Instruction to trade only at a specified price or better. This chapter uses the concept when students interpret the order book and execution costs.
- bid-ask spread
- Difference between best available ask and bid prices. It helps explain the reasoning required to interpret the order book and execution costs.
- market liquidity
- Ability to trade desired quantity promptly with limited price impact and cost. Its limit matters because quoted spread omits price impact, latency, fees and the risk the order does not execute.
- managed fund
- Pooled investment vehicle allocating investor capital under a mandate and fee structure. This chapter uses the concept when students compare fund exposure, fees, governance and benchmark.
- net asset value
- Value of fund assets less liabilities per unit under the fund's valuation convention. It helps explain the reasoning required to compare fund exposure, fees, governance and benchmark.
- benchmark
- Reference portfolio or index used to interpret mandate and performance. Its limit matters because past return and a familiar label do not establish skill, suitability or liquidity.
- active management
- Security selection or timing intended to outperform a benchmark after costs. This chapter uses the concept when students distinguish benchmark exposure, tracking, liquidity, tax and active risk.
- index fund
- Portfolio designed to track a specified index under declared methodology. It helps explain the reasoning required to distinguish benchmark exposure, tracking, liquidity, tax and active risk.
FNCE90047 FAQ
Where do students usually lose marks in fnce90047?
linking security cash flows and pricing to the balance-sheet, market-structure, liquidity, incentive and regulatory mechanism that makes those claims viable or fragile
How is fnce90047 assessed?
a 30% 4,000-word group assignment and a 70% three-hour end-of-semester examination
What is the fnce90047 exam or final-task format?
A three-hour individual examination worth 70% is held during the official examination period.
Does fnce90047 have a hurdle or component-level pass rule?
The current S2 subject guide does not publish a separate numeric component hurdle; the overall subject pass standard applies.
Which offering does this fnce90047 guide cover?
It is aligned to Semester 2, 2026; confirm your enrolled class and timetable in the current institutional system.
What prerequisites or restrictions apply to fnce90047?
Confirm current eligibility in the University Handbook.
Is this fnce90047 resource an official university guide?
No. It is an independent fnce90047 study resource; current institutional instructions remain authoritative for assessment operation.
Which current fnce90047 dates are captured?
Group Assignment: 24 September 2026 at 6:00 pm; End-of-semester Examination: Official examination period. Confirm any change and the exact submission setting in the live LMS.
Questions students ask in each FNCE90047 chapter
- What is the main task in Financial Systems, Regulation and Critical Thinking?
- Connect a financial claim to institutions, regulation and system function. Chapter 01 · Financial Systems, Regulation and Critical Thinking
- What is the main task in Public and Private Capital Raising?
- Compare issuance routes, dilution, disclosure, pricing and control. Chapter 02 · Public and Private Capital Raising
- What is the main task in Equity Markets, Orders and Trading?
- Interpret the order book and execution costs. Chapter 03 · Equity Markets, Orders and Trading
- What is the main task in Managed Funds, Superannuation and Research?
- Compare fund exposure, fees, governance and benchmark. Chapter 04 · Managed Funds, Superannuation and Research
- What is the main task in Active, Index and ETF Investment Products?
- Distinguish benchmark exposure, tracking, liquidity, tax and active risk. Chapter 05 · Active, Index and ETF Investment Products
- What is the main task in Fixed-Income Markets and Yield Risk?
- Price debt cash flows and estimate rate exposure. Chapter 06 · Fixed-Income Markets and Yield Risk
- What is the main task in Banking and Financial Intermediaries?
- Trace bank balance-sheet cash flows through a funding shock. Chapter 07 · Banking and Financial Intermediaries
- What is the main task in Mortgages and Securitisation?
- Trace borrower payments, prepayment, default and tranche priority. Chapter 08 · Mortgages and Securitisation
- What is the main task in FX Markets and Capital Flows?
- Convert and hedge foreign cash flows while preserving quote direction. Chapter 09 · FX Markets and Capital Flows
- What is the main task in Derivatives and Risk Management?
- Choose derivative direction and size for a named risk. Chapter 10 · Derivatives and Risk Management
- What is the main task in Insurance, Credit Default Swaps and Risk Transfer?
- Compare insured risk, cds protection, incentives and counterparty exposure. Chapter 11 · Insurance, Credit Default Swaps and Risk Transfer
How to study for the exam
Retrieve the course map, practise the recurring method—map issuers, investors, intermediaries and contractual claims, trace funding and risk transfer through market structure, apply a transparent price or exposure metric, then stress rates, liquidity, default, incentives and regulation—on changed scenarios, and verify every operational assessment detail in the live institutional system.
Your AI Financial Markets tutor for FNCE90047
Stuck on a hard FNCE90047 question? Sia is AskSia’s AI Financial Markets tutor — ask any FNCE90047 Financial Markets and Instruments question and get a clear, step-by-step explanation grounded in how the course is actually taught and assessed. Read this whole study guide free, then take your hardest questions to Sia.
