An easy guide to interest rate dynamics, bond valuation and credit analysis
This course covers the curriculum of Fixed Income as contained in the CFA Level 1 curriculum. It is split into two Study sessions containing 4 readings.
As this is a very complex and technical topic, at the same time being one of the most important topics for CFA, I have simplified it for ease of understanding of the students.
The course contains approximately 4 hours of video lectures, split in short lectures to make it convenient for students, supporting reading material and topic based tests to ensure that taught topics are well understood by the students.
The first study session on "Valuation Concepts" covers essential knowledge and skills needed for the valuation of fixed income investments. It begins with a discussion of the term structure of interest rates and interest rate dynamics. The following reading addresses arbitrage-free valuation of fixed-income securities. The study session concludes with an introduction to the valuation and analysis of bonds with embedded options.
The second Study Session "Topics in Fixed Income Analysis" consists of a discussion of credit analysis and how credit standards affect liquidity.
Students taking CFA Level 2 exam must take this course for understanding this complex topic. I would also recommend those students enrolled in CFA Level 3 to take this course who struggled with the basic concepts of fixed income in Level 1 and 2 so that their foundation improves for Fixed Income portfolio management in Level 3.
This course is also recommended for anyone in the investment field wanting to transition into the fixed income domain.