This study session presents the fundamentals of fixed-income investments. Fixed income is one of the largest segments of global financial markets. The first reading introduces elements that define and characterize fixed-income securities. The second reading describes the primary issuers, sectors, and types of bonds. The third reading introduces calculation and interpretation of prices, yields, and spreads for fixedincome securities; market conventions for price/yield calculations and quotations; and spot rates, forward rates, and alternative definitions of a yield curve. The fourth reading focuses on securitization and describes types, characteristics, and risks of asset-backed securities.
Reading 51 Fixed-Income Securities: Defining Elements
Reading 52 Fixed-Income Markets: Issuance, Trading, and Funding
Reading 53 Introduction to Fixed-Income Valuation
Reading 54 Introduction to Asset-Backed Securities
STUDY SESSION 16 Fixed Income Analysis of Risk
This study session focuses on the analysis risks associated with fixed-income securities; emphasis is on interest rate and credit risks. The first reading describes the sources of return on fixed-income securities and measures and analysis of interest rate risk. The second reading introduces measures and analysis of credit risk of fixedincome securities.
Reading 55 Understanding Fixed-Income Risk and Return
Reading 56 Fundamentals of Credit Analysis