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Updated in [July 20th, 2023]
This Level I CFA Prep Course (2023) - Fixed Income provides an overview of the elements that define and characterise fixed-income securities. Participants will learn what to look out for when investing in a bond, the legal, regulatory and tax framework bonds operate under, the various coupon payment types, and an overview of global fixed income markets. The course will also examine government, corporate and structured finance bond market sectors, and participants will learn how to make basic bond valuations, calculate and quote bond prices and yields, and understand what is yield spread. Additionally, participants will learn what is securitisation, and its benefits, what is tranching, and the difference between credit tranching and time tranching, how mortgage-backed securities (MBS) are structured, what is a CDO, and how to understand and calculate bond duration (Macaulay, modified, approximate modified, effective and key-rate durations). Participants will also make convexity adjustments to calculate change in price of a bond when its yield changes, understand credit ratings and role of credit ratings agencies, and analyse the credit risk of a company.
Course Syllabus
Fixed Income Securities: Defining Elements
Fixed-Income Markets: Issuance, Trading, and Funding
Introduction to Fixed-Income Valuation
Introduction to Asset-Backed Securities
Understanding Fixed-Income Risk and Return
Fundamentals of Credit Analysis