Week 13: Fixed Income Investments

Having finished the two equity study sessions, we only need to work through the two fixed income sessions and the final derivatives and alternative investments study sessions before we are through the entire curriculum. Please report your results so far in your week 12 progress report.

The week to come:

The fixed income topic area is divided into two separate study sessions. The first study session covers basic fixed income concepts and valuation, as a lead in to the second study session that gets more involved with fixed income credit analysis and valuation. The first reading introduces the defining elements of fixed income instruments. The second reading explores fixed income issuance, trading and funding. The third reading provides an introduction to fixed income valuation, our final reading this week provides an introduction to Asset-Backed Securities (ABS).

Tip:

As discussed for many of the other topic areas the number of LOS and end of chapter questions does not reflect the number of pages in each reading. E.g. the 3rd reading in this study session has got more than twice as many as the other readings we are covering this week, even though all four readings are roughly the same length. This may just be a coincidence, and there is no guarantee that this relationship will be reflected on the exam, but it’s definitely worthwhile taking the time to feel at home in the 3rd reading (introduction to fixed income valuation).

The below study approach should be ingrained in your process by now, but as a reminder:

  • Please ensure that you write down and answer the LOS as you work your way through each reading. The combined effort of question practice and LOS statement “hunting” will ensure that you are focused on seeking out the most important information as you progress through each reading. Once you are done with each reading flick through the flashcards and make a note in your question log about those flashcards that you are still struggling to answer.
  • Also, please ensure that you attempt the end of chapter questions from the curriculum as soon as you finish each reading. As you answer the questions make a note in your question log about the most difficult ones (especially whenever you resort to guessing). When you are done with the questions, review your answers thoroughly (particularly those that you got wrong) and add these questions to your question log as well.
  • Lastly, as you wrap up each reading attempt only the challenging flashcards and end of chapter questions from your question log. Revise your answers and make a note of those that you are still struggling with. Continue this same process each day until you can answer all with confidence.

Please record your progress in your week 13 progress report.

In week 14 we are completing Fixed Income Investments and starting Derivatives.

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