Fixed Income
　　Analysis of Risk
　　This study session focuses on the analysis risks associated with fixed-income secu?rities; emphasis is on interest rate and credit risks. The first reading describes the sources of return on fixed-income securities and measures and analysis of interest rate risk. The second reading introduces measures and analysis of credit risk of fixed-income securities.
　　READING ASSIGNMENTS
　　Reading 55 Understanding Fixed-Income Risk and Return by James F. Adams, PhD, CFA, and Donald J. Smith, PhD
　　Reading 56 Fundamentals of Credit Analysis by Christopher L. Gootkind, CFA
　　LEARNING OUTCOMES
　　READING 55. UNDERSTANDING FIXED-INCOME RISK AND RETURN
　　The candidate should be able to:
　　a calculate and interpret the sources of return from investing in a fixed-rate bond;
　　b define, calculate, and interpret Macaulay, modified, and effective durations;
　　c explain why effective duration is the most appropriate measure of interest rate risk for bonds with embedded options;
　　d explain how a bond’s maturity, coupon, embedded options, and yield level affect its interest rate risk;
　　e calculate the duration of a portfolio and explain the limitations of portfolio duration;
　　f calculate and interpret the money duration of a bond and price value of a basis point (PVBP);
　　g calculate and interpret approximate convexity and distinguish between approxi?mate and effective convexity;
　　h estimate the percentage price change of a bond for a specified change in yield, given the bond’s approximate duration and convexity;
　　i describe how the term structure of yield volatility affects the interest rate risk of a bond;
　　j describe the relationships among a bond’s holding period return, its duration, and the investment horizon;
　　k explain how changes in credit spread and liquid affect yield-to-maturity of a bond and how duration and convexity can be used to estimate the price effect of the changes.
　　READING 56. FUNDAMENTALS OF CREDIT ANALYSIS
　　The candidate should be able to:
　　a describe credit risk and credit-related risks affecting corporate bonds;
　　b describe seniority rankings of corporate debt and explain the potential violation of the priority of claims in a bankruptcy proceeding;
　　c distinguish between corporate issuer credit ratings and issue credit ratings and describe the rating agency practice of “notching”;
　　d explain risks in relying on ratings from credit rating agencies;
　　e explain the components of traditional credit analysis;
　　f calculate and interpret financial ratios used in credit analysis;
　　g *uate the credit quality of a corporate bond issuer and a bond of that issuer, given key financial ratios of the issuer and the industry;
　　h describe factors that influence the level and volatility of yield spreads;
　　i calculate the return impact of spread changes;
　　j explain special considerations when *uating the credit of high yield, sover?eign e calculate the duration of a portfolio and explain the limitations of portfolio duration;
　　f calculate and interpret the money duration of a bond and price value of a basis point (PVBP);
　　g calculate and interpret approximate convexity and distinguish between approxi?mate and effective convexity;
　　h estimate the percentage price change of a bond for a specified change in yield, given the bond’s approximate duration and convexity;
　　i describe how the term structure of yield volatility affects the interest rate risk of a bond;
　　j describe the relationships among a bond’s holding period return, its duration, and the investment horizon;
　　k explain how changes in credit spread and liquid affect yield-to-maturity of a bond and how duration and convexity can be used to estimate the price effect of the changes.
　　READING 56. FUNDAMENTALS OF CREDIT ANALYSIS
　　The candidate should be able to:
　　a describe credit risk and credit-related risks affecting corporate bonds;
　　b describe seniority rankings of corporate debt and explain the potential violation of the priority of claims in a bankruptcy proceeding;
　　c distinguish between corporate issuer credit ratings and issue credit ratings and describe the rating agency practice of “notching”;
　　d explain risks in relying on ratings from credit rating agencies;
　　e explain the components of traditional credit analysis;
　　f calculate and interpret financial ratios used in credit analysis;
　　g *uate the credit quality of a corporate bond issuer and a bond of that issuer, given key financial ratios of the issuer and the industry;
　　h describe factors that influence the level and volatility of yield spreads;
　　i calculate the return impact of spread changes;
　　j explain special considerations when *uating the credit of high yield, sover?eign,and municipal debt issuers and issues.
　　　
　　掃一掃微信，*9時(shí)間獲取2014年CFA考試報(bào)名時(shí)間和考試時(shí)間提醒
　　
　　
　　高頓網(wǎng)校特別提醒：已經(jīng)報(bào)名2014年CFA考試的考生可按照復(fù)習(xí)計(jì)劃有效進(jìn)行！另外，高頓網(wǎng)校2014年CFA考試輔導(dǎo)高清網(wǎng)絡(luò)課程已經(jīng)開通，通過針對(duì)性地講解、訓(xùn)練、答疑、?？?，對(duì)學(xué)習(xí)過程進(jìn)行全程跟蹤、分析、指導(dǎo)，可以幫助考生全面提升備考效果。

　　報(bào)考指南：2014年CFA考試備考指南
　　免費(fèi)題庫：2014年CFA免費(fèi)題庫
　　考前沖刺：CFA備考秘籍
　　高清網(wǎng)課：CFA考試網(wǎng)絡(luò)課程