A comprehensive guide covering all essential topics for the CFA Level 1 exam.
Bond basics, yield measures, and legal frameworks.
Cash flow structures, embedded options, and legal aspects.
Primary/secondary markets, participants, and market structure.
Corporate funding from short-term to long-term debt.
Sovereign debt, auction processes, and non-sovereign entities.
DCF analysis, YTM, and matrix pricing techniques.
Periodicity, embedded options, and spread analysis (OAS, Z-Spread).
FRNs, money market instruments, and yield comparisons.
Spot, par, and forward curves and their relationships.
Sources of return, Macaulay duration, and horizon matching.
Macaulay, Modified, and Approximate Duration.
Convexity calculations, portfolio duration, and risk management.
Effective duration, key rate duration, and empirical measures.
Credit analysis, rating agencies, and yield spread factors.
Sovereign and non-sovereign credit analysis.
Corporate creditworthiness, financial ratios, and seniority.
The securitization process, SPEs, benefits, and risks.
ABS structures, covered bonds, credit tranching, and CDOs.
Mortgage loans, prepayment risk, RMBS, and CMBS.