Fixed Income, Credit & Rates

The instrument. What a bond is, what its terms mean, and who is on each side.

• 01

  Bond Price and Yield: Turning a Promise Into a Price

  Calculate

The first risk. How much the price moves when the rate does.

• 01

  Accrued Interest: The Part of the Price That Is Not Price

  Calculate
• 02

  Recovery Rate: What Is Left After a Borrower Stops Paying

  Calculate

Positioning on the curve. Steepener, flattener, butterfly, carry and roll.

• 01

  Carry and Roll-Down: Splitting a Year on an Unmoved Curve

  Calculate

The benchmark issuer. Government securities, bills, the benchmark yield and the policy link.

• 01

  Bond Total Return: What a Year of Holding Actually Gives

  Calculate
• 02

  Bond Ladder: Six Rungs of One Borrower, Priced Out

  Calculate

The second risk. What a spread compensates for, and what a rating claims.

• 01

  Credit Spread: The Subtraction and What It Pays For

  Calculate
• 02

  Expected Credit Loss: Three Numbers, One Multiplication

  Calculate

Judging the borrower. Seniority, covenants, collateral and the leverage picture.

• 01

  Leverage Ratios: What Each One Can and Cannot Tell You

  Calculate

Structure. Pooling loans, slicing risk, and the waterfall that pays.

• 01

  Weighted Average Life: One Number for When Money Returns

  Calculate

Holding many bonds. Ladder, barbell, bullet and portfolio-level measures.

• 01

  Fixed Income Portfolio Measures: Duration and Maturity

  Calculate

The output. What the analyst produces, on what assumptions, with what limits stated.

• 01

  Fixed-Charge Coverage: Which Base, and Over What Period

  Calculate