Chapter 7: Fixed Income

In this section

• Fixed-Income Instrument Features
  Fixed-Income Instrument Features: Explains Function of the Bond Indenture and Affirmative and Negative Covenants with clear explanations, key formulas, and worked examples, plus practice questions with explanations for CFA Level 1.
• Fixed-Income Cash Flows and Types
  Fixed-Income Cash Flows and Types: Explains Overview of Fixed-Income Cash Flows and Bullet Bonds with clear explanations, key formulas, and worked examples, plus practice questions with explanations for CFA Level 1.
• Fixed-Income Issuance and Trading
  Fixed-Income Issuance and Trading: Explains Primary vs. Secondary Markets and Public Offerings vs. Private Placements with clear explanations, key formulas, and worked examples, plus practice questions with explanations for CFA Level 1.
• Fixed-Income Markets for Corporate Issuers
  Fixed-Income Markets for Corporate Issuers: Explains Overview of Corporate Bond Markets and Investment-Grade vs. High-Yield Bonds with clear explanations, key formulas, and worked examples, plus practice questions with explanations for CFA Level 1.
• Fixed-Income Markets for Government Issuers
  Fixed-Income Markets for Government Issuers: Explains Overview of Government Fixed-Income Markets and Sovereign Bonds: The Foundational Building Blocks with clear explanations, key formulas, and worked examples, plus practice questions with explanations for CFA Level 1.
• Fixed-Income Bond Valuation: Prices and Yields
  Fixed-Income Bond Valuation: Prices and Yields: Explains Bond Pricing Fundamentals and Key Concepts and Relationship Among Price, Yield, Coupon Rate, and Time with clear explanations, key formulas, and worked examples, plus practice questions with explanations for CFA Level 1.
• Yield and Yield Spread Measures for Fixed-Rate Bonds
  Yield and Yield Spread Measures for Fixed-Rate Bonds: Explains Why Yield Measures Matter and Key Yield Measures with clear explanations, key formulas, and worked examples, plus practice questions with explanations for CFA Level 1.
• Yield and Yield Spread Measures for Floating-Rate Instruments
  Yield and Yield Spread Measures for Floating-Rate Instruments: Explains The Essentials of Floating-Rate Notes and Key Terms to Keep in Mind with clear explanations, key formulas, and worked examples, plus practice questions with explanations for CFA Level 1.
• The Term Structure of Interest Rates: Spot, Par, and Forward Curves
  The Term Structure of Interest Rates: Spot, Par, and Forward Curves: Explains Spot Rates and Bootstrapping Spot Rates in Practice with clear explanations, key formulas, and worked examples, plus practice questions with explanations for CFA Level 1.
• Interest Rate Risk and Return
  Interest Rate Risk and Return: Explains Decomposing Bond Returns and Coupon Income with clear explanations, key formulas, and worked examples, plus practice questions with explanations for CFA Level 1.
• Yield-Based Bond Duration Measures and Properties
  Yield-Based Bond Duration Measures and Properties: Explains Why Duration Matters and Modified Duration with clear explanations, key formulas, and worked examples, plus practice questions with explanations for CFA Level 1.
• Yield-Based Bond Convexity and Portfolio Properties
  Yield-Based Bond Convexity and Portfolio Properties: Explains Why Convexity Matters and The Price–Yield Curve at a Glance with clear explanations, key formulas, and worked examples, plus practice questions with explanations for CFA Level 1.
• Curve-Based and Empirical Fixed-Income Risk Measures
  Curve-Based and Empirical Fixed-Income Risk Measures: Explains Revisiting the Concept of Duration and Effective Duration: Handling Embedded Options with clear explanations, key formulas, and worked examples, plus practice questions with explanations for CFA Level 1.
• Credit Risk
  Credit Risk: Explains Mastering Credit Risk: Test Your Knowledge and During an economic expansion, credit spreads generally: with clear explanations, key formulas, and worked examples, plus practice questions with explanations for CFA Level 1.
• Credit Analysis for Government Issuers
  Credit Analysis for Government Issuers: Explains Understanding Government Credit Analysis and The Sovereign vs. Non-Sovereign Distinction with clear explanations, key formulas, and worked examples, plus practice questions with explanations for CFA Level 1.
• Credit Analysis for Corporate Issuers
  Credit Analysis for Corporate Issuers: Explains Understanding Qualitative Factors and Management and Corporate Governance with clear explanations, key formulas, and worked examples, plus practice questions with explanations for CFA Level 1.
• Fixed-Income Securitization
  Fixed-Income Securitization: Explains Key Players in Securitization and The Securitization Chain: Conceptual Diagram with clear explanations, key formulas, and worked examples, plus practice questions with explanations for CFA Level 1.
• Asset-Backed Security (ABS) Instrument and Market Features
  Asset-Backed Security (ABS) Instrument and Market Features: Explains Non-Mortgage ABS: An Introduction and Key Components of an ABS Transaction with clear explanations, key formulas, and worked examples, plus practice questions with explanations for CFA Level 1.
• Mortgage-Backed Security (MBS) Instrument and Market Features
  Mortgage-Backed Security (MBS) Instrument and Market Features: Explains Residential Mortgage-Backed Securities (RMBS) and Prepayment Risk in RMBS with clear explanations, key formulas, and worked examples, plus practice questions with explanations for CFA Level 1.