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.
　　　
　　扫一扫微信，*9时间获取2014年CFA考试报名时间和考试时间提醒
　　
　　
　　高顿网校特别提醒：已经报名2014年CFA考试的考生可按照复习计划有效进行！另外，高顿网校2014年CFA考试辅导高清网络课程已经开通，通过针对性地讲解、训练、答疑、模考，对学习过程进行全程跟踪、分析、指导，可以帮助考生全面提升备考效果。

　　报考指南：2014年CFA考试备考指南
　　免费题库：2014年CFA免费题库
　　考前冲刺：CFA备考秘籍
　　高清网课：CFA考试网络课程