Fixed Income Basics
- Fixed Income
- Bond Pricing
- Yield Curve
- Convexity of a Bond
- Debt Covenants
- Credit Analysis
- Credit Rating Process
- Asset Backed Securities
- ABS and MBS Index
- Loss Given Default – LGD
- Secured Loans
- Unsecured Loans
- Secured vs Unsecured Loan
- Subordinated Debt
- Subordination Debt
- Payment in Kind Bond
- Promissory Notes
- Junior Tranche
- Fallen Angel
- Bills of Exchange vs Promissory Note
- Bonds vs Debentures
- Bills of Exchange
- Bond Equivalent Yield Formula
- Equity Research vs Credit Research
- Books on Bonds Market
- Treasury Management Book
- Fixed Income Books
- Credit Research Books
- Credit Analyst Career
Learn Fixed Income Basics
- What are Bonds?
- Bond Mathematics including bond pricing, convexity, and yield curve
- What are debt covenants?
- How to do credit analysis?
- What are ABS and MBS?
- What is the difference between Secured and Unsecured Loan
- Difference between subordinated and unsubordinated debt
- What is a junior tranche?
- What is the difference between bills of exchange and promissory notes
- Difference between Bonds and Debentures
A bond is an instrument of debt from the bond issuer to the bondholder.
Here we look at Bond Pricing Formula, its calculations in excel, the link between bond pricing and yield, bootstrapping and different types of spreads.
Yield curves are one of the most fundamental measures of the effect on the economy due to various factors and are also an important driver of an economy.
Convexity of a Bond
Convexity in Bonds measures the degree of the non-linear relationship between the price and yield of the bond.
Debt covenants are the restrictions imposed by the lenders (investors, creditors etc.) on the borrowers (the company/debtor).
Credit analysis is a process of drawing conclusions from available data regarding the creditworthiness of an entity and making recommendations regarding the perceived needs, and risks.
Credit Rating Process
A credit rating determines the probability of the company paying back its financial indebtedness within the stipulated time.
Asset Backed Securities
ABS provides an opportunity to large institutional investors to invest in higher yielding asset classes without taking much additional risk, and at the same time helps lenders in raising capital without accessing primary markets.
ABS and MBS Index
In this article, learn what are ABS and MBS Indices, what do they signify, types of ABS/MBS Indices, examples and its relationship with an economic crisis.
Loss Given Default – LGD
Loss Given Default is the amount of loss incurred by a lender when a borrower defaults, expressed in percentage.
A secured loan is a loan that is backed by an asset or equipment.
An unsecured loan is just the opposite of secured loan. In the case of an unsecured loan, the lender doesn’t need any collateral and at the same time, the borrower doesn’t need to offer any property/asset to avail the loan.
Secured vs Unsecured Loan
Secured loan is a loan protected by an asset/equipment. Whereas An unsecured loan isn’t protected by an asset.
Subordinated debt is an interesting concept in the case of business. As the name suggests, the debt which is subject to subordination when the creditors default is called subordinated debt.
In this article we will look at subordination debt, its types such as collateral, structural, contractual & understand risk, working with the help of examples.
Payment in Kind Bond
PIK bond is the one on which the borrowing company pays no cash interest until the total principal is repaid or redeemed.
Promissory note is a note containing a promise to pay a certain amount to the person who should receive the money.
Hypothecation is a term used wherein the borrower can pledge his movable assets as a loan while retaining the interest and the ownership of the assets.
Guide to Junior Tranches, important features of Junior Tranches, how it is recorded in the balance sheet and why are Junior Tranches used?
Fallen Angels refer to a bond which was once attached with a High/Stable rating but due to some unfavorable circumstances, has experienced a serious and sustained decline in the ratings and market demand.
Bills of Exchange vs Promissory Note
Bill of exchange is an instrument ordering the debtor to pay a certain amount within a stipulated period of time. Whereas promissory note is a promise to pay a certain amount of money within a stipulated period of time. And the promissory note is issued by the debtor.
Bonds vs Debentures
Bond is a financial instrument which is issued for raising an additional amount of capital. Whereas debenture is a debt security which is issued by Corporation not secured by assets but by the Credit rating of the organization.
Bills of Exchange
Bills of exchange are negotiable instruments which contain an order to pay a certain amount to a particular person within a stipulated period of time.
Bond Equivalent Yield Formula
An investor needs to know the bond equivalent yield formula. It allows the investor to calculate the annual yield of a bond, sold at a discount.
Equity Research vs Credit Research
Equity research is about finding the valuation of company mind you, which is listed company on the stock exchange. whereas credit research is more about the bonds and the interest rates. It is much more technical and complex in comparison with equity research.
Books on Bonds Market
Guide to Top 10 Best Books on Bonds Market, Bond Trading, Bond Investing & sneak peek in what those books propose and their best takeaways.
Treasury Management Book
This post on treasury Books is to give you a heads up on treasury management & a sneak peek in what those books propose and their best takeaways.
Fixed Income Books
This post on best Fixed Income Books is to give you a heads up on fixed income and a sneak peek in what those books propose and their best takeaways.
Credit Research Books
This post on credit research books is to give you a heads up on credit research & a sneak peek into what those books propose and their best takeaways.