Chapter 1: Fixed-Income Markets and Instruments

In this section

• Overview of Fixed-Income Securities and Markets
  Overview of Fixed-Income Securities and Markets (CFA Level 1): Key Characteristics of Fixed-Income Securities, Major Types of Issuers, and Comparing Fixed-Income and Equity Markets. Key definitions, formulas, and exam tips.
• Roles and Participants in the Bond Market
  Roles and Participants in the Bond Market (CFA Level 1): Key Issuers, Governments, and Municipalities and Local Authorities. Key definitions, formulas, and exam tips.
• Key Issuer Sectors and Classifications
  Key Issuer Sectors and Classifications (CFA Level 1): Sovereign Issuers, Non-Sovereign and Municipal Issuers, and Quasi-Governmental Agencies. Key definitions, formulas, and exam tips.
• Secondary Trading, Liquidity, and Market Regulation
  Secondary Trading, Liquidity, and Market Regulation (CFA Level 1): Structure of Secondary Trading, Determinants of Market Liquidity, and Market Structures: Quote-Driven vs. Order-Driven. Key definitions, formulas, and exam tips.
• Electronic Trading Platforms and Market Innovations
  Electronic Trading Platforms and Market Innovations (CFA Level 1): Emergence of eTrading Platforms, Key eTrading Models, and Request-for-Quote (RFQ). Key definitions, formulas, and exam tips.
• Bond Market Indexes and Benchmark Construction
  Bond Market Indexes and Benchmark Construction (CFA Level 1): Purpose of Bond Market Indexes, Key Elements of Bond Index Construction, and Selection Criteria. Key definitions, formulas, and exam tips.
• Impact of Global Macroeconomic Factors on Fixed-Income Markets
  Impact of Global Macroeconomic Factors on Fixed-Income Markets (CFA Level 1): Macroeconomic Indicators and Their Influence on Bond Yields and Central Bank Monetary Policy and Quantitative Easing. Key definitions, formulas, and exam tips.
• Market Liquidity Stress Events and Regulatory Responses
  Market Liquidity Stress Events and Regulatory Responses (CFA Level 1): Defining Liquidity Stress and Why It Matters, Key Symptoms of Liquidity Stress, and Famous Historical Liquidity Events. Key definitions, formulas, and exam tips.
• Emerging Market Debt and Currency Considerations
  Emerging Market Debt and Currency Considerations (CFA Level 1): Sovereign vs. Corporate Emerging Market Debt, Growth of EM Corporate Issuance, and Unique Risks. Key definitions, formulas, and exam tips.
• The Role of Fixed Income in Multi-Asset Portfolio Construction
  The Role of Fixed Income in Multi-Asset Portfolio Construction (CFA Level 1): Rationale for Bonds in Multi-Asset Portfolios, Stabilizing Influences, and Diversification and Correlation. Key definitions, formulas, and exam tips.
• Digital Platforms for Retail Bond Investors and Settlement
  Digital Platforms for Retail Bond Investors and Settlement (CFA Level 1): Key Drivers Transforming Retail Bond Markets and Technological Innovation and Lower Costs. Key definitions, formulas, and exam tips.
• Green Bond Indices and Climate-Aligned Debt Markets
  Green Bond Indices and Climate-Aligned Debt Markets (CFA Level 1): Defining Green Bonds and the Climate-Aligned Debt Universe, Certification Frameworks and Market Standards, and Anatomy of a Green Bond Index. Key definitions, formulas, and exam tips.
• Historical Perspectives on Major Bond Market Disruptions
  Historical Perspectives on Major Bond Market Disruptions (CFA Level 1): Key Historical Bond Market Disruptions, Latin American Debt Crisis (1980s), and Russian Default (1998). Key definitions, formulas, and exam tips.
• Big Data and Algorithmic Trading in Fixed-Income Markets
  Big Data and Algorithmic Trading in Fixed-Income Markets (CFA Level 1): Role of Large Datasets in Fixed-Income, Algorithmic Trading Strategies, and Real-Time Arbitrage and Supply-Demand Imbalances. Key definitions, formulas, and exam tips.
• Bond ETFs and Their Impact on Market Liquidity
  Bond ETFs and Their Impact on Market Liquidity (CFA Level 1): Basics of Bond ETFs, Why Does This Matter for Liquidity?, and Creation/Redemption Mechanism. Key definitions, formulas, and exam tips.
• Global Clearing and Settlement Systems for Fixed Income
  Global Clearing and Settlement Systems for Fixed Income (CFA Level 1): Why Clearing and Settlement Matter, Key Entities: Local vs. International CSDs, and Comparison Table: Local CSD vs. International CSD. Key definitions, formulas, and exam tips.