Chapter 1

Introduction to Fixed Income Markets

Features of debt instruments (Maturity, Par value, Coupon rate)

medium • 1 min read

Types of bonds: Government, Corporate, Municipal, Sovereign

medium • 2 min read

Zero-coupon bonds, floating rate notes, and inflation-indexed bonds

medium • 3 min read

Primary and secondary markets for bonds

medium • 4 min read

Role of credit rating agencies

medium • 5 min read

Chapter 2

Bond Yields and Valuation

Time value of money for bonds

medium • 1 min read

Current yield, Yield to Maturity (YTM), and Yield to Call (YTC)

medium • 2 min read

Bond pricing principles and theorems

medium • 3 min read

Price-yield relationship (Convex curve)

medium • 4 min read

Realized compound yield

medium • 5 min read

Chapter 3

Term Structure of Interest Rates

The yield curve and its shapes

medium • 1 min read

Spot rates and forward rates

medium • 2 min read

Theories of term structure: Pure Expectations, Liquidity Preference

medium • 3 min read

Market Segmentation and Preferred Habitat theories

medium • 4 min read

Bootstrapping the yield curve

medium • 5 min read

Chapter 4

Interest Rate Risk Management

Macaulay Duration and Modified Duration

medium • 1 min read

Properties of duration and its use in hedging

medium • 2 min read

Convexity and price change approximations

medium • 3 min read

Immunization of bond portfolios

medium • 4 min read

Asset-Liability Management (ALM) using duration matching

medium • 5 min read

Chapter 5

Advanced Fixed Income Products

Mortgage-Backed Securities (MBS) features

medium • 1 min read

Prepayment risk and Single Monthly Mortality (SMM)

medium • 2 min read

Collateralized Debt Obligations (CDOs)

medium • 3 min read

Asset-Backed Securities (ABS)

medium • 4 min read

High-yield (junk) bonds and sovereign debt crises

medium • 5 min read