Fixed income may not be as exciting as stocks are, but it's still an important aspect of the CFA exam, and this course focused on everything you need to know for the Fixed Income section of the exam. We’ll cover bond markets and the characteristics of the securities that trade there. Since calculations are required on the CFA exam including in the fixed income area, we will also go over how to use the financial calculator to solve bond problems for the exam as well as discussing risk metrics in fixed income. In addition, structured products are a core institutional investment today so we will cover what you should know about them as well as the basics of credit analysis that may come up for the exam.

Learning Objectives
  • Recognize basic features of a fixed-income security.
  • Explore mechanisms available for issuing bonds in primary markets, secondary market trading in securities, and types of debt traded in fixed income markets.
  • Recognize and calculate a bond's price and identify the relationships among a bond’s price, coupon rate, maturity, and market discount rate (yield-to-maturity).
  • Discover types and characteristics of asset-backed securities, including mortgage pass-through securities and collateralize mortgage obligations, and explain the cash flows and risks for each type.
  • Identify, calculate, and interpret Macaulay, modified, and effective duration and the uses and limitations of each metric.
  • Explore credit risk, credit analysis and explain the four Cs (Capacity, Collateral, Covenants, and Character) of traditional credit analysis.
  • Recognize and understand high level strategies for dealing with fixed income questions on the CFA.
Last updated/reviewed: August 24, 2023

Included In Certifications

This course is included in the following Certification Programs:

11 CoursesCFA Level 1 Preparation Certification Program

  1. CFA Level 1 Prep: Introduction to the CFA Exam
  2. CFA Level 1 Prep: 1 - Ethics and Professional Standards
  3. CFA Level 1 Prep: 2 - Quantitative Methods
  4. CFA Level 1 Prep: 3 - Economics
  5. CFA Level 1 Prep: 4 - Financial Reporting and Analysis
  6. CFA Level 1 Prep: 5 - Corporate Finance
  7. CFA Level 1 Prep: 6 - Equities Markets
  8. CFA Level 1 Prep: 7 - Fixed Income
  9. CFA Level 1 Prep: 8 - Derivatives
  10. CFA Level 1 Prep: 9 - Alternative Investments
  11. CFA Level 1 Prep: 10 - Portfolio Management
3 Reviews (15 ratings)

Reviews

5
Anonymous Author
I learned from this course about bond terminology, bond market, different bonds (government, corporate, municipal), bond rating, tax consequence, how to use a financial calculator to calculate bond value, concepts of structured bond products, and bond borrower's credit analysis, etc.

5
Anonymous Author
Presenter was knowledgeable about the subject and able to deliver it clearly. He kept my attention.

4
Member's Profile
Having a calculator to practice with, embedded in the course would be most helpful

Prerequisites
Course Complexity: Intermediate

No advanced preparation or prerequisites are required for this course. However being part of a series, you may consider taking all related courses in sequence: https://www.illumeo.com/curriculum/cfa-level-1-preparation

Education Provider Information
Company: Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact: For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Instructor for this course
Course Syllabus
INTRODUCTION AND OVERVIEW
  Fixed Income Foundations12:25
  Fixed Income Markets12:42
  Fixed Income Calculations11:44
  Bond Duration10:42
  Structured Products13:18
  Credit Analysis5:15
  Fixed Income Test Taking Strategies2:32
CONTINUOUS PLAY
  CFA Level 1 Prep: 7 - Fixed Income57:56
SUPPORTING MATERIAL
  Slides: CFA Level 1 Prep: 7 - Fixed IncomePDF
  CFA Level 1 Prep: 7 - Fixed Income Glossary/ IndexPDF
REVIEW AND TEST
  REVIEW QUESTIONSquiz
 FINAL EXAMexam