Code
Designing a Bond Trading Strategy for a Hedge Fund
Overview
What this challenge is about.
Your task is to design a long-short strategy: long corporate bonds and short gilts (or vice versa) based on spread analysis. Use historical data (provided) to backtest the strategy over the past 2 years, calculate Sharpe ratio, maximum drawdown, and assess performance under different market conditions. Success is a presentation showing the strategy's risk-return profile and a recommendation on whether to implement it.
The Brief
What you'll do, and what you'll demonstrate.
Can a relative value trading strategy that bets on narrowing yield spreads between UK gilts and corporate bonds generate consistent risk-adjusted returns?
Earning criteria — what you'll demonstrate
- Understand relative value trading in fixed-income markets
- Backtest a trading strategy using historical bond data
- Calculate and interpret risk-adjusted performance metrics
- Incorporate transaction costs and liquidity into strategy evaluation
Program Fit
Where this fits in your program.
Sharpens the same skills your degree expects you to demonstrate.
Skills
Skills you'll demonstrate.
Each one shows up on your verified credential.
Careers
Roles this prepares you for.
Real titles. Real skill bridges. Pick the one closest to your trajectory.
Career mappings coming soon.