LM01 Fixed-Income Securities: Defining Elements (2024)

101 concepts level I

101 concepts level II

2021 Level I Corporate Finance Full Videos

2021 Level I Economics Full Videos

2021 Level I Ethics Full Videos

2021 Level I FRA Full Videos

2021 Level I Portfolio Management Full Videos

2021 Level I Quantitative Methods Full Videos

Advice and How to Study Videos

All-Levels

Alternative Investments

Alternative Investments (AI)

BookLet Top Level

Corporate Issuers

Corporate Issuers (CI)

Demystified Videos

Derivatives

Derivatives (DV)

Economics

Economics (EC)

Equity

Equity Investments (EI)

Ethical and Professional Standards (ES)

Ethics

featured

Financial Reporting and Analysis

Financial Statement Analysis (FSA)

Fixed Income

Fixed Income (FI)

Level I

Level II

Level III

LM01 Alternative Investment Features, Methods, and Structures.

LM01 Categories, Characteristics, and Compensation Structures of Alternative Investments

LM01 Corporate Structures and Ownership

LM01 Derivative Instrument and Derivative Market Features

LM01 Derivative Instrument and Derivative Market Features.

LM01 Ethics and Trust in the Investment Profession

LM01 Ethics and Trust in the Investment Profession.

LM01 Fixed-Income Instrument Features.

LM01 Fixed-Income Securities: Defining Elements

LM01 Introduction to Financial Statement Analysis

LM01 Introduction to Financial Statement Analysis.

LM01 Market Organization & Structure.

LM01 Market Organization and Structure

LM01 Organizational Forms, Corporate Issuer Features, and Ownership.

LM01 Portfolio Management Overview

LM01 Portfolio Management: An Overview.

LM01 Rates and Returns.

LM01 The Firm & Market Structures.

LM01 Topics in Demand and Supply Analysis

LM02 Alternative Investment Performance and Returns.

LM02 Analyzing Income Statements.

LM02 Code of Ethics and Standards of Professional Conduct Profession

LM02 Code of Ethics and Standards of Professional Conduct.

LM02 Financial Reporting Standards

LM02 Fixed Income Markets - Issuance Trading and Funding

LM02 Fixed-Income Cash Flows and Types.

LM02 Forward Commitment and Contingent Claim Features and Instruments

LM02 Forward Commitment and Contingent Claim Features and Instruments.

LM02 Introduction to Corporate Governance and Other ESG Considerations

LM02 Investors and Other Stakeholders.

LM02 Organizing, Visualizing, and Describing Data

LM02 Performance Calculation and Appraisal of Alternative Investments

LM02 Portfolio Risk & Return: Part I.

LM02 Portfolio Risk and Return Part I

LM02 Security Market Indexes

LM02 Security Market Indexes.

LM02 The Firm and Market Structures

LM02 Time Value of Money in Finance.

LM02 Understanding Business Cycles.

LM03 Aggregate Output, Prices and Economic Growth

LM03 Analyzing Balance Sheets.

LM03 Business Models & Risks

LM03 Corporate Governance: Conflicts, Mechanisms, Risks, and Benefits.

LM03 Derivative Benefits, Risks, and Issuer and Investor Uses

LM03 Derivative Benefits, Risks, and Issuer and Investor Uses.

LM03 Fiscal Policy.

LM03 Fixed-Income Issuance and Trading.

LM03 Guidance for Standards I-VII

LM03 Guidance for Standards I–VII.

LM03 Introduction to Fixed Income Valuation

LM03 Investments in Private Capital: Equity and Debt.

LM03 Market Efficiency

LM03 Market Efficiency.

LM03 Portfolio Risk & Return: Part II.

LM03 Portfolio Risk and Return Part II

LM03 Private Capital, Real Estate, Infrastructure, Natural Resources, and Hedge Funds

LM03 Probability Concepts

LM03 Statistical Measures of Asset Returns.

LM03 Understanding Income Statements

LM04 An Introduction to Asset-Backed Securities

LM04 Analyzing Statements of Cash Flows I.

LM04 Arbitrage, Replication, and the Cost of Carry in Pricing Derivatives

LM04 Arbitrage, Replication, and the Cost of Carry in Pricing Derivatives.

LM04 Basics of Portfolio Planning & Construction

LM04 Basics of Portfolio Planning and Construction.

LM04 Capital Investments

LM04 Common Probability Distributions

LM04 Fixed-Income Markets for Corporate Issuers.

LM04 Introduction to the Global Investment Performance Standards (GIPS)

LM04 Introduction to the Global Investment Performance Standards (GIPS).

LM04 Monetary Policy.

LM04 Overview of Equity Securities

LM04 Overview of Equity Securities.

LM04 Probability Trees and Conditional Expectations.

LM04 Real Estate and Infrastructure.

LM04 Understanding Balance Sheets

LM04 Understanding Business Cycles

LM04 Working Capital and Liquidity.

LM05 Analyzing Statements of Cash Flows II.

LM05 Capital Investments and Capital Allocation.

LM05 Company Analysis: Past and Present.

LM05 Fixed-Income Markets for Government Issuers.

LM05 Introduction to Geopolitics.

LM05 Introduction to Industry and Company Analysis

LM05 Monetary and Fiscal Policy

LM05 Natural Resources.

LM05 Portfolio Mathematics.

LM05 Pricing and Valuation of Forward Contracts and for an Underlying with Varying Maturities

LM05 Pricing and Valuation of Forward Contracts.

LM05 Sampling and Estimation

LM05 The Behavioral Biases of Individuals

LM05 The Behavioral Biases of Individuals.

LM05 Understanding Cash Flow Statements

LM05 Understanding Fixed-Income Risk and Return

LM05 Working Capital & Liquidity

LM06 Analysis of Inventories.

LM06 Capital Structure.

LM06 Cost of Capital-Foundational Topics

LM06 Equity Valuation: Concepts and Basic Tools

LM06 Financial Analysis Techniques

LM06 Fixed-Income Bond Valuation: Prices and Yields.

LM06 Fundamentals of Credit Analysis

LM06 Hedge Funds.

LM06 Hypothesis Testing

LM06 Industry and Competitive Analysis.

LM06 International Trade.

LM06 Introduction to Geopolitics

LM06 Introduction to Risk Management

LM06 Introduction to Risk Management.

LM06 Pricing and Valuation of Futures Contracts

LM06 Pricing and Valuation of Futures Contracts.

LM06 Simulation Methods.

LM07 Analysis of Long-Term Assets.

LM07 Business Models.

LM07 Capital Flows and the FX Market.

LM07 Capital Structure

LM07 Company Analysis: Forecasting.

LM07 Estimation and Inference.

LM07 International Trade and Capital Flows

LM07 Introduction to Digital Assets.

LM07 Introduction to Linear Regression

LM07 Inventories

LM07 Pricing and Valuation of Interest Rate and Other Swaps.

LM07 Pricing and Valuation of Interest Rates and Other Swaps

LM07 Technical Analysis

LM07 Yield and Yield Spread Measures for Fixed-Rate Bonds.

LM08 Currency Exchange Rates

LM08 Equity Valuation: Concepts and Basic Tools.

LM08 Exchange Rate Calculations.

LM08 Fintech in Investment Management

LM08 Hypothesis Testing.

LM08 Long Lived Assets

LM08 Measures of Leverage

LM08 Pricing and Valuation of Options

LM08 Pricing and Valuation of Options.

LM08 Topics in Long-Term Liabilities and Equity.

LM08 Yield and Yield Spread Measures for Floating-Rate Instruments.

LM09 Analysis of Income Taxes.

LM09 Income Taxes

LM09 Option Replication Using Put-Call Parity

LM09 Option Replication Using Put–Call Parity.

LM09 Parametric and Non-Parametric Tests of Independence.

LM09 The Term Structure of Interest Rates: Spot, Par, and Forward Curves.

LM10 Financial Reporting Quality.

LM10 Interest Rate Risk and Return.

LM10 Non-current (Long-Term) Liabilities

LM10 Simple Linear Regression.

LM10 Valuing a Derivative Using a One-Period Binomial Model

LM10 Valuing a Derivative Using a One-Period Binomial Model.

LM11 Financial Analysis Techniques.

LM11 Financial Reporting Quality

LM11 Introduction to Big Data Techniques.

LM11 Yield-Based Bond Duration Measures and Properties.

LM12 Applications of Financial Statement Analysis

LM12 Introduction to Financial Statement Modeling.

LM12 Yield-Based Bond Convexity and Portfolio Properties.

LM13 Curve-Based and Empirical Fixed-Income Risk Measures.

LM14 Credit Risk.

LM15 Credit Analysis for Government Issuers.

LM16 Credit Analysis for Corporate Issuers.

LM17 Fixed-Income Securitization.

LM18 Asset-Backed Security (ABS) Instrument and Market Features.

LM19 Mortgage-Backed Security (MBS) Instrument and Market Features.

New Booklet Top level

Portfolio Management

Portfolio Management (PM)

Quantitative Methods

Quantitative Methods (QM)

Uncategorized

LM01 Fixed-Income Securities: Defining Elements (2024)

FAQs

What are the defining elements of fixed-income securities? ›

The three important elements that an investor needs to know when investing in a fixed-income security are: (1) the bond's features, which determine its scheduled cash flows and thus the bondholder's expected and actual return; (2) the legal, regulatory, and tax considerations that apply to the contractual agreement ...

How to value fixed-income securities? ›

A fixed-income bond can be valued using a market discount rate, a series of spot rates, or a series of forward rates. A bond yield-to-maturity can be separated into a benchmark and a spread.

What are the main characteristics of a fixed-income security? ›

Fixed-Income securities are debt instruments that pay a fixed amount of interest, in the form of coupon payments, to investors. The interest payments are commonly distributed semiannually, and the principal is returned to the investor at maturity.

What are fixed-income securities with an example? ›

Fixed-income securities are debt instruments that pay a fixed rate of interest. These can include bonds issued by governments or corporations, CDs, money market funds, and commercial paper.

Which of the following aspects of a fixed-income security is always fixed? ›

A fixed-income security is a financial obligation that pays a fixed amount of interest—in the form of coupon payments—to investors at specified points in the future.

What factors distinguish fixed-income securities from equities? ›

A share of ownership in a corporation usually without any guarantee of a fixed return is known as equity. In contrast, debts which guarantee a specified return over a specified period of time is known as fixed-income security.

How do you calculate securities value? ›

Most securities are valued using some variation of the Discounted Cash Flow (DCF) method. The DCF method approach states that the price of a security is equal to the present discounted value of all cash flows generated by the security in the future.

How to analyse fixed-income securities? ›

Fixed Income Analysis
  1. Evaluate the risk characteristics underlying debt securities and to assess the capacity of the borrowing entity to meet its financial obligations (credit analysis)
  2. Identify which debt securities represent attractive investment opportunities.

What is the present value of a fixed-income securities based on? ›

Present Value.

The present value of a bond is calculated using the: (1) Discount rate. (a) The discount rate is the yield of the bond; it is estimated by the yield on similar bonds, taking into account their coupon rate, term, and quality.

Which factors most influence fixed-income securities? ›

The main factors that impact the prices of fixed-income securities include interest rate changes, default or credit risk, and secondary market liquidity risk. Fixed-income securities are loans made by an investor to a government or corporate borrower.

What are the disadvantages of fixed-income securities? ›

Fixed-income securities typically provide lower returns than stocks and other types of investments, making it difficult to grow wealth over time. Additionally, fixed-income investments are subject to interest rate risk.

What is the difference between fixed-income and securities? ›

Equity securities are financial assets that represent shares of a corporation. Fixed income securities are debt instruments that provide returns in the form of periodic, or fixed, interest payments to the investor.

What is the yield on a fixed-income security? ›

The coupon rate (or nominal rate) on a fixed income security is the interest that the issuer agrees to pay to the security holder each year, expressed as a percentage of the security's principal amount (par value). The current yield is the ratio of the annual interest (coupon) payment and the bond's market price.

How to live on a fixed-income? ›

First and foremost, creating a detailed budget is the key. Start by listing all your income sources, including pensions, Social Security, required retirement account distributions, or any other fixed payments. Next, prioritize essential needs such as housing, utilities, transportation, groceries, and healthcare.

Which bonds give a monthly income? ›

Monthly interest fixed rate bonds pay interest monthly on a lump sum deposited for a fixed term. These bonds can be one of the best options if you are looking for an account which will provide you with a source of regular monthly extra income.

What is the composition of fixed-income? ›

Fixed-income instruments include a broad range of publicly traded securities (such as commercial paper, notes, and bonds traded through exchanges as well as OTC) and non-publicly traded instruments (such as loans and private placements).

What are the components of fixed-income return CFA? ›

Learn the components of fixed income returns, including income yield, rolldown return, expected price change, and credit losses.

What is commonly referred to as a fixed-income security? ›

Examples of fixed-income securities include bonds, treasury bills, Guaranteed Investment Certificates (GICs), mortgages or preferred shares, all of which represent a loan by the investor to the issuer.

What are fixed-income structured notes? ›

What are the main types of Fixed Income Structured Notes? Fixed Rate Notes have “fixed” interest rates for their entire term. Step-Up Notes have a “fixed” interest rate for a specified period which increases at predetermined dates in the future.

Top Articles
Latest Posts
Article information

Author: Golda Nolan II

Last Updated:

Views: 6677

Rating: 4.8 / 5 (58 voted)

Reviews: 81% of readers found this page helpful

Author information

Name: Golda Nolan II

Birthday: 1998-05-14

Address: Suite 369 9754 Roberts Pines, West Benitaburgh, NM 69180-7958

Phone: +522993866487

Job: Sales Executive

Hobby: Worldbuilding, Shopping, Quilting, Cooking, Homebrewing, Leather crafting, Pet

Introduction: My name is Golda Nolan II, I am a thoughtful, clever, cute, jolly, brave, powerful, splendid person who loves writing and wants to share my knowledge and understanding with you.