Learn / Fixed income in depth Go to Overview 1. Bond prices and yields 2. The yield curve and forward rates, Pro 3. Duration and convexity, Pro 4. Credit risk: spreads, default, and recovery, Pro 5. The rest of the bond market, Pro 6. Positioning a bond fund, Pro 7. Liabilities and immunization, Pro Flashcards, 0 of 22 reviewed Basic quiz Advanced quiz Terms Fixed income in depth
0 of 7 lessons
0 of 22 cards How a bond is priced, what the curve says about future rates, how far a portfolio moves when yields and spreads change, and how a bond fund or a pension positions against a benchmark or a liability.
A Advanced4 lessons 4 Credit risk: spreads, default, and recovery A credit spread pays for expected default losses plus a risk premium. Splitting the two tells you whether a bond is cheap. 11 min 5 The rest of the bond market Inflation linked bonds, municipals, mortgage backed securities, and floating rate notes each change one piece of the plain bond, and each shows up in interviews. 11 min 6 Positioning a bond fund A bond PM beats the benchmark with four levers: duration, curve, sector, and security selection. Carry and rolldown are what the fund earns if nothing moves. 11 min 7 Liabilities and immunization A pension or insurer is judged against what it owes, not an index. Matching the duration of assets to liabilities protects the funded status when rates move. 11 min Q Advanced quiz 10 questions, 80% passes