Capital Markets and Fixed Income Analyst
Bond pricing, yield curves, credit spreads and issuance.
Role cheat sheet
- Coupon and yield
Coupon is contractual interest on face value. Yield depends on price, cash flows and maturity under the chosen convention.
Review the lesson- Yield curve
Shows yields across maturities for a comparable class of instruments. A curve can shift, steepen or flatten.
- Credit spread
Yield premium over a chosen benchmark that can reflect credit risk, liquidity and other factors. Match maturity and optionality.
- Duration and convexity
Modified duration approximates sensitivity to a small yield move. Convexity captures curvature for larger moves.
Review the lesson- Primary and secondary markets
Primary issuance creates or distributes securities through an offer. Secondary trading transfers existing positions between investors.
Review the lesson- Issue economics
Compare benchmark yield, spread, fees and covenants. Net issuer proceeds can differ from face amount or headline offer size.
Practise interview questions
Why can two corporate bonds with the same maturity trade at different yields?
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