Evaluate your understanding of fixed-income portfolio management with exercises for today’s investment practitioner
Fixed Income Analysis, 5th Edition offers the key component of effective learning - practice. Designed for both students and professionals, this companion workbook aligns with the latest Fixed Income Analysis text chapter-by-chapter. To improve your comprehension of core concepts, this book includes brief chapter summaries before diving into challenging practice questions and their solutions, while also laying out learning objectives so you can understand the “why” of each exercise.
Fixed Income Analysis Workbook, 5th Edition will help you:
- Synthesize essential material from the main Fixed Income Analysis text using real-world applications.
- Understand the key fundamentals of fixed income securities and portfolio management.
- Work toward specific chapter objectives to internalize important information.
CFA Institute is the world’s premier association for investment professionals, and the governing body for the CFA® Program, CIPM® Program, CFA Institute ESG Investing Certificate, and Investment Foundations® Program. Those seeking a deeper understanding of fixed income portfolio management tactics will value the level of expertise CFA Institute brings to the discussion as well as the extra practice delivered in the fifth edition Fixed Income Analysis Workbook based on real scenarios investors face every day.
Table of Contents
Part I
Learning Objectives, Summary Overview, and Problems
Chapter 1 Fixed-Income Securities: Defining Elements 3
Learning Outcomes 3
Summary Overview 3
Problems 5
Chapter 2 Fixed-Income Markets: Issuance, Trading, and Funding 9
Learning Outcomes 9
Summary Overview 9
Problems 11
Chapter 3 Introduction to Fixed-Income Valuation 15
Learning Outcomes 15
Summary Overview 15
Problems 18
Chapter 4 Introduction to Asset-Backed Securities 25
Learning Outcomes 25
Summary Overview 25
Problems 28
Chapter 5 Understanding Fixed-Income Risk and Return 33
Learning Outcomes 33
Summary Overview 34
Problems 36
Chapter 6 Fundamentals of Credit Analysis 41
Learning Outcomes 41
Summary Overview 41
Problems 45
Chapter 7 The Term Structure and Interest Rate Dynamics 53
Learning Outcomes 53
Summary Overview 53
Problems 54
Chapter 8 The Arbitrage-Free Valuation Framework 65
Learning Outcomes 65
Summary Overview 65
Problems 66
Chapter 9 Valuation and Analysis of Bonds with Embedded Options 75
Learning Outcomes 75
Summary Overview 76
Problems 78
Chapter 10 Credit Analysis Models 89
Learning Outcomes 89
Summary Overview 89
Problems 90
Chapter 11 Credit Default Swaps 99
Learning Outcomes 99
Summary Overview 99
Problems 100
Chapter 12 Overview of Fixed-Income Portfolio Management 105
Learning Outcomes 105
Summary Overview 105
Problems 107
Chapter 13 Liability-Driven and Index-Based Strategies 113
Learning Outcomes 113
Summary Overview 113
Problems 117
Chapter 14 Learning Outcomes 125
Summary Overview 125
Problems 127
Chapter 15 Fixed-Income Active Management: Credit Strategies 133
Learning Outcomes 133
Summary Overview 134
Problems 135
Part II
Solutions
Chapter 1 Fixed-Income Securities: Defining Elements 145
Solutions 145
Chapter 2 Fixed-Income Markets: Issuance, Trading, and Funding 149
Solutions 149
Chapter 3 Introduction to Fixed-Income Valuation 153
Solutions 153
Chapter 4 Introduction to Asset-Backed Securities 167
Solutions 167
Chapter 5 Understanding Fixed-Income Risk and Return 175
Solutions 175
Chapter 6 Fundamentals of Credit Analysis 183
Solutions 183
Chapter 7 The Term Structure and Interest Rate Dynamics 189
Solutions 189
Chapter 8 The Arbitrage-Free Valuation Framework 197
Solutions 197
Chapter 9 Valuation and Analysis of Bonds with Embedded Options 203
Solutions 203
Chapter 10 Credit Analysis Models 211
Solutions 211
Chapter 11 Credit Default Swaps 225
Solutions 225
Chapter 12 Overview of Fixed-Income Portfolio Management 229
Solutions 229
Chapter 13 Liability-Driven and Index-Based Strategies 233
Solutions 233
Chapter 14 Yield Curve Strategies 239
Solutions 239
Chapter 15 Fixed-Income Active Management: Credit Strategies 243
Solutions 243
About the CFA Program 247
