Level I CFA® Program Prep – Fixed Income

Fixed Income Securities: Defining Elements
4 Nuggets | 1 Quiz
Basic Features of Fixed Income Securities
Coupon Structures
Legal, Regulatory and Tax Considerations
Contingency Provisions
QUIZ: Fixed-Income Securities: Defining Elements
Fixed-Income Markets: Issuance, Trading, and Funding
6 Nuggets | 1 Quiz
Overview of Global Fixed Income Markets
Primary and Secondary Bond Markets
Bonds from Government and Government-related Sectors
Corporate Debt
Structured Financial Instruments
Short-Term Funding for Banks
QUIZ: Fixed-Income Markets: Issuance, Trading, and Funding
Introduction to Fixed-Income Valuation
5 Nuggets | 1 Quiz
Bond Prices and Time Value of Money
Bond Prices: Quotes and Calculations
Bond Yield Measures
Maturity Structure of Interest Rates
Yield Spreads
QUIZ: Introduction to Fixed-Income Valuation
Introduction to Asset-Backed Securities
7 Nuggets | 1 Quiz
How Securitisation Works
Residential Mortgage Loans
Residential Mortgage-Backed Securities
Commercial Mortgage-Backed Securities
Non-Mortgage Asset-Backed Securities
Collateralised Debt Obligations
Covered Bonds
QUIZ: Introduction to Asset-Backed Securities
Understanding Fixed-Income Risk and Return
8 Nuggets | 1 Quiz
Sources of Return
Macaulay Duration
Modified Duration and Money Duration
Approximate Modified Duration and Convexity Adjustment
Effective Duration and Key Rate Duration
Duration of a Bond Portfolio
Factors that Influence Interest Rate Risks
Empirical Duration
QUIZ: Understanding Fixed-Income Risk and Return
Fundamentals of Credit Analysis
8 Nuggets | 1 Quiz
Credit Risks
Capital Structure and Seniority Rankings
Credit Ratings and Ratings Agencies
Corporate Credit Analysis
Corporate Credit Analysis (Ratios)
Credit Yields and Spreads
Special Considerations of High Yield Credit Analysis
Special Considerations of Sovereign and Non-Sovereign Credit Analysis
QUIZ: Fundamentals of Credit Analysis
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Maturity Structure of Interest Rates

Level I CFA® Program Prep – Fixed Income Introduction to Fixed-Income Valuation Maturity Structure of Interest Rates
  • [i] Spot curve vs yield curve vs par curve vs forward curve.
  • [j] Forward rates (calculate spot rates from forward rates, forward rates from spot rates, and the price of a bond using forward rates).

Terms covered: Yield curve, Coupon bonds yield curve, Spot curve, Par curve, Stripped bonds, Forward rate, Spot-forward pricing relationship, Implied forward rate

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Related Terms:
  • Term: Spot-forward pricing relationship
  • Term: Coupon bonds yield curve
  • Term: Implied forward rate
  • Term: Stripped bond
  • Term: Forward rate
  • Term: Yield curve
  • Term: Spot curve
  • Term: Par curve
  • Term: Spot rates

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Welcome to PrepNuggets

Hey visitor,

Are you a CFA Level I candidate, or someone who is exploring taking the CFA exam? Four years ago, I was in your shoes. I am a Computer Engineering graduate and have been working as an engineer all my life. Having developed a keen interest in finance, I decided on a career switch to the finance field and enrolled into the CFA program at the same time.

Was it tough? You bet!

Adjusting to the drastic career change was tough. I naturally neglected the preparation for my Level I exam in June 2014. It was not until the middle of March 2014 that I realized I only had a little more than 2 months to the exam. To compound my problems, I basically did not have a preparation strategy. Having no background in finance at all, I tried very hard to read the curriculum from cover to cover, but eventually that fell flat. I can still recall the number of times I dozed off while studying, or just going back and forth trying to understand even the simplest concept. My mind simply could not keep up after a hard day at work.

Does all these sound familiar to you? Well, take heart. No matter how bleak it seems, at least sit for the exam and treat it as a learning experience. That was basically my attitude as I burrowed through my exam prep with toil and stress. By God’s grace, I did pass my Level I exam in June 2014. It was an experience I would not want to revisit though.

Tweaking the approach

For the Level II exam, I endeavoured not to repeat the mistakes I made. Based on the Pareto 80/20 principle, I learnt to extract the most essential bits from the curriculum enough to give me that 80% result to pass. Being a visual learner, I took notes and summaries in pictorial form. Instead of reserving huge segments of time to study, I carved out pockets of time to learn and practise – accommodating to my full-time job. I managed to pass my Level II and Level III exams consecutively with considerably less effort and stress than when I did my level I.

Why PrepNuggets?

I love the CFA Program and truly value the skills and ethics that are imparted to make me a better finance professional. My desire is to help candidates who are keen to pursue this path to do so in the most effective and painless process as possible – based on the lessons that I learnt as a candidate. I have set up PrepNuggets with the vision to revolutionise learning by using technology, catering to the short attention span that we can afford. If this makes sense to you, join the PrepNuggets community by signing up for your free student account. I am confident that the materials that we have laboriously crafted will bring you closer to that dream pass with just that 20% effort. Let us do the hard work for you.

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Keith Tan, CFA
Founder and Chief Instructor
PrepNuggets

About the Author

Keith Tan, CFA

Keith is the founder and chief instructor of PrepNuggets. He has a wide range of interests in all things related to tech, from web development to e-learning, gadgets to apps. Keith loves exploring different cultures and the untouched gems around the world. He currently lives in Singapore but frequently travels to share his knowledge and expertise with others.

Have you ever gotten stuck in your study because you can’t remember a formula, or what a specific term means? Now, say goodbye to scanning through all the videos and ploughing through pages and pages just to find what you are looking for. All the important formulas, definitions and diagrams you need for the exam are now at your fingertips at prepnuggets.com/glossary.

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