Master the fixed income market basics, including securities, issuance, valuation, credit analysis, and asset backed securities. Explore bond features, ratings, issuers, rate dynamics, and portfolio management with relative value methodologies.

Describe principal repayment structures for bonds, including bullet, amortized, partially amortized, and sinking fund models, and explain sources of payment, collateral, covenants, and tax considerations across issuers.

Explore various coupon structures in fixed income, including floating rate notes, step-up and credit-linked coupons, payment-in-kind, deferred and index-linked bonds, plus embedded options like callable, portable, and convertible bonds.

Retail investors access fixed income markets via mutual funds or etfs while primary market issues bonds through public or private offerings and secondary market trades on exchanges or otc.

Explore corporate notes and bonds, their maturity ranges, structures, and contingency provisions, and examine short-term funding, repurchase agreements, and bond valuation through discounted cash flow.

Analyze accruals, semiannual coupon adjustments, and yield to maturity to value fixed-rate bonds; compare bond prices, par value, and market discount rate, highlighting inverse price relation and convexity.

Examine how coupon and maturity affect bond price volatility, then price a three-year bond using spot rates to illustrate no-arbitrage value and par value.

Learn how clean and accrued values form the full price (dirty price), why flat price quotes prevent misrepresentation, and how 30/360 day counts drive price and yield calculations.

Compute full price from dirty and accrued price to obtain clean price, and determine bond quantities from cash, nominal value, and dirty price, with accrued interest under four day-count bases.

Analyze money market vs bond market yield measures, pricing with discount and add-on rates, and derive forward rates and the term structure of interest rates.

Examine fixed income risk and return through yield to maturity, credit and interest rate risk, reinvestment of coupons, and potential capital gains or losses, highlighting horizon yield and carrying value.

Examine how reinvested coupons and varying yields affect the realized rate of return, including capital loss implications, and distinguish coupon reinvestment risk from market price risk across investment horizons.

Calculate approximate modified duration and approximate Macaulay duration to gauge a bond's price sensitivity to yield changes, and compare with effective duration for curve risk and embedded options.

Explain how bond duration measures interest rate risk, linking Macaulay duration with yield to maturity, coupon and embedded options, and portfolio money duration.

Estimate bond price changes in HKD using money duration and DV01, compute the price value of a basis point, and apply convexity to improve yield estimates.

Explore approximate convexity and its calculation, compare money and effective convexity, and analyze how convexity and duration influence bond price changes under yield shifts.

Explore the fundamentals of credit analysis, including debt to capital ratio, covenants, collateral, liquidity measures, and yield spreads, with emphasis on risk, cash flow, and management quality.

Examine credit risk with four measures: probability of default, loss given default, expected loss, and present value of expected loss—covering traditional scoring and ratings and the option pricing link.

Examine structural credit models that link a firm's balance sheet to the expected loss and its present value using asset value, debt, maturity, and a lognormal distribution.

Analyze the present value of expected loss versus the expected loss, highlighting the time value of money, risk premium, and the move from structural to reduced form credit risk models.

Explains collateralized debt obligations, including tranche structure and coupon calculations, swap cash flows, and the securitization process across mortgage and non-mortgage assets.

Explore arbitrage-free valuation for fixed income and derivatives, using spot and forward rates, stripping and reconstitution, and interest-rate trees to price cash flows.

Demonstrates a binomial interest rate tree framework for valuing bonds using backward induction, with lattice models, two-state forward rates, volatility assumptions, and historical and implied volatility methods.

Learn arbitrage-free bond pricing using a binomial interest-rate tree, including coupon payments, backward induction, and tree calibration to match term structures.

Explore bonds with embedded options, including call and put provisions, conversion options, and other contingencies. Learn to value these bonds using forward rates and backward induction.

Explore the valuation of default free, callable, and putable bonds under interest rate volatility, using the OAS framework and embedded option analysis to assess risk, duration, and cap floater values.

Explore the term structure and interest rate dynamics, including bootstrapping to derive zero-coupon yields, forward pricing, and the swap curve with swap spreads.

Explore term structure and interest rate dynamics, including z spread, ted spread, and libor ois spreads. Analyze theories and models, from pure expectation to arbitrage-free yield curves and pca-driven factors.

Explain the framework for fixed income portfolio management, distinguishing liability matching from benchmark objectives, and outline indexing styles and risk-factor considerations for benchmark selection.

Apply stratified sampling and multi-factor models to mirror bond index risk factors—duration, key rate duration, present value distribution, sector and issuer exposure—while tracking risk with active strategies.

Explain spread duration's role in measuring portfolio value sensitivity to spread changes and nominal, zero volatility, and option adjusted spreads, plus immunization strategies including contingent immunization and cash flow matching.

Examine fixed income strategies with leverage, showing how borrowing can magnify returns and risk, including a case study on duration and the role of repos in funding and risk management.

This lecture links higher federal funds and repo rates with seasonal effects, and reviews portfolio risk measures—standard deviation, semivariance, shortfall risk, value at risk—and futures-based duration management.

Presents duration hedging with futures to offset cross-rate exposure. Describes basis, hedge ratio, regression for hedge effectiveness, and international bond investing.

Explore international fixed income challenges, including currency risk and breakeven spread analysis, and learn to select a fixed income manager through due diligence and style analysis to capture alpha.

Mean reversion and quality spread analysis illustrate relative value in global credit markets, including bullet, callable, portable, sinking fund structures, credit curves, and barbell strategies.

Explore coupon bond pricing for government securities, using a basic Excel formula and the underlying yield to maturity, par value, and annual 5% coupons to illustrate price movements.

Compute the present value of bond cash flows by discounting at the prevailing yield to maturity, and show how rates and credit spreads affect bond prices.

Derive the bond yield to maturity by discounting semiannual cash flows to present value, compute period spot yields for multiple maturities, and verify the bond value at 100.

Compute and compare spot yields and forward yields from coupon, spot, and arbitrage-free relationships, deriving six-month and one-year forward yields from the term structures.

Bootstrap the yield curve by deriving spot and forward yields from traded securities with different maturities to price bonds, including non-liquid government securities, accurately.

Bootstrap the two-year yield from known prices and cash flows, then use it with a three-year eurobond price to derive the three-year spot yield and price an illiquid government security.

explains how a forward rate agreement fixes a rate upfront to balance cash flows across 30- and 60-day horizons, linking spot and forward yields with dv01 and duration.

Explore fixed income instruments, including US treasury bills, notes, and bonds, corporate and municipal bonds, and securitized products, highlighting tax exemptions, maturities, and callable features.

Compare after-tax returns of taxable and tax-exempt bonds and examine corporate bonds with default risk and options; explore mortgage-backed and asset-backed securities, guarantees, prepayment, and valuation tools.

Learn to value a two-year treasury using discounted cash flow by computing the present value of semiannual coupons and par at maturity, given a 0.87% yield.

Compute a bond's value as the present value of coupons plus par value using a discounted cash flow with a known yield. Observe the inverse relation between price and yield.

Learn to bootstrap forward rates from spot rates and price a three-year zero coupon bond, applying present value to identify whether a security is undervalued or overpriced.

Learn how effective duration estimates bond price changes with small yield moves, and how convexity corrects for curvature, enabling more accurate price forecasting and valuation.

Explain how duration and convexity determine price moves when yields change, emphasizing convexity as curvature that helps investors gain from falling yields and limit losses when yields rise.

Explore the fundamentals of fixed income securities, including bonds, pricing, yield concepts, duration, and the yield curve, while understanding issuer and investor roles and the course structure.

Explore bond characteristics, including coupon rate, fixed and variable interest, and the role of face value. Learn about maturity, interest payment dates, and accrued interest when bonds trade between dates.

Explore day count conventions such as 30 by 360 and actual by actual, and ip periods that standardize interest calculations, while classifying bonds by issuer, coupon, and redemption features.

Calculate the present value of a bond's cash flows, including coupons and par value, discounted at the investor's required yield, to indicate whether it trades at premium, discount, or par.

Price a plain vanilla bond by discounting coupon payments as an ordinary annuity and the par value at the required yield, reflecting the time value of money.

Price plain vanilla bonds by discounting semiannual coupons and par value to present value, illustrating how higher yields depress price and how zero-coupon bonds are priced as the discounted par.

Price bonds in the secondary market between payment periods by calculating accrued interest and day count conventions, including actual by actual and 30 by 360, to compare yields.

Explore day-count conventions in bond pricing, including actual by actual and 30 by 360. Compute accrued interest, dirty vs clean prices, and how coupon timing and yield influence price movements.

Define yield as the effective rate of interest on a security, accounting for price changes and capital gains, and explain how it differs from the coupon rate.

Explore how yield reflects a bond's return to maturity and how required yield influences pricing. See how current yield differs from the coupon rate by using market price.

Compare current yield and adjusted current yield, including dirty price adjustments, with yield to maturity (IRR) to understand a bond's true return considering time value and capital gains.

Explain yield to maturity concepts, including reinvestment of coupons, holding to maturity, and constant reinvestment rates, then illustrate the calculation with a bond example and a reverse calculation.

Understand yield to maturity and how bond price determines returns. Explore yield to call, yield to put, and yield to worst for callable and put option bonds.

Explore how the yield curve maps yield to maturity against bond maturities, revealing normal, flat, and inverted shapes and signaling expected future interest rates for fixed income investors.

Explore the three yield curve patterns—normal, flat, and inverted—and how investor expectations, maturity risk, and credit rating shape bond yields, including the treatment of zero coupon and fixed-coupon bonds.

Modified duration adjusts Macaulay duration for changing yields to quantify a bond’s price move and price volatility, guiding investors to compare bonds and assess interest rate risk.

Explore fixed income fundamentals and advanced strategies, from bond basics and yield analysis to credit risk and portfolio management, with real world examples and interactive exercises.

Explore the fixed income market, the world’s largest at over $200 trillion, where issuers include corporates and municipalities and investors include pension funds and banks, earning coupons on bonds.

Explore bond types, including sovereign, state, municipal, corporate bonds and commercial papers, plus bank capital bonds, and see how coupons and fixed or floating rates drive returns.

Compute the price and yield for money market instruments, focusing on discount yields for CDs, CPP, and t-bills. Explain yield till maturity and effective annual yield with reinvestment assumptions.

Explore how duration and convexity shape bond price sensitivity to yield changes, and how coupon and maturity affect duration, with practical Excel examples.

Compute convexity using the second formula to relate yield changes to price, and evaluate portfolio risk with dv01, the currency value of one basis point moves.

Learn to compute bond duration using the modified duration formula, set current yield and semiannual coupons, and derive PV01 for a mixed long/short portfolio in INR.

Demonstrate day count conventions, cash-flow scheduling, and bond pricing mechanics, including actual vs 30 by 360, IRR vs XIRR, clean price, accrued interest, and settlement.

Compare discounted yield with YTM, and learn to calculate holding period return, breakeven price, and accrued interest when trading bonds, CDs, and commercial paper in the secondary market.

Explore pricing strategies for discounted instruments, distinguish discounted yield from YTM, and manage a live portfolio by calculating purchase price and holding period return using yield data.

Explore how to model fixed income trades by choosing trade and settlement dates, inputting yields, and computing trade price, breakeven price, accrued interest, and capital gains or losses.

Count the number of coupon payments from settlement to maturity using semiannual frequency and actual/actual basis, shown by determining the previous coupon date, from December 2012 to July 2017.

Analyze how coupon days and the current coupon period determine settlement, next coupon dates, and day count conventions, then relate price to yield to maturity and yield depletion at par.

Explain the price formula for fixed income securities, including settlement, maturity, coupon, and yield, and show semiannual, duration, and effective annual yield normalization.

Learn to value discounted instruments for dated securities with price and yield formulas, including discount yield and bond equivalent yield, using Excel and duration under actual by 365 conventions.

Explore internal rate of return and nonuniform cash flows using XIRR and XNPV, and compare XIRR’s annualized yields to the semiannual yield.

Contrast zero coupon rates with YTM and show why practitioners favor YTM in trades. Demonstrate forward rates and the upward-sloping term structure to guide reinvestment decisions.

Explore how zero coupon rates and yields-to-maturity shape the term structure of interest rates, reveal forward rates, and explain how curve shapes—upward, inverted, and steepened—inform fixed income investing strategies.

The liquidity preference theory adds a liquidity premium for longer-term bonds, causing an upward-sloping yield curve, while real markets balance demand and supply with varied investor and issuer incentives.

Explore fixed income pricing by applying a discounted cash flow approach to bonds, including embedded options and coupon structures.

Learn to estimate a bond's discount rate by starting with the treasury risk-free rate and adding a credit, liquidity, and prepayment risk premium, with a bond valuation example.

View how clean and dirty prices differ by adjusting for accrued interest on semiannual coupons, and relate price to yield through a convex, non-linear curve.

Explore how bond prices respond to yield changes, compute the present value at three yields, and explain convergence to par, par value, and zero coupon mechanics.

Learn yield to maturity as the irr-like rate equating a bond's cash flows to its price, explore reinvestment risk, and examine arbitrage via spot rates and coupon stripping.

Calculate a portfolio's duration from weighted bond durations and analyze embedded options: call, put, callable, portable, asset-backed, floating rate, and convertible bonds, and their impact on yield, price, and valuation.

Explore relative valuation techniques, including the earnings multiplier and the P/E ratio, and compare them with the dividend discount model, detailing forward and trailing P/E, peer benchmarks, and volatility dynamics.

Compute enterprise value from market value of stock plus debt minus cash, yielding about 30.3 million, then EV/EBITDA compared to industry; discuss asset-based valuation and relative models.