Chapter 1: Fixed-Income Markets and Instruments

In this section

• Overview of Fixed-Income Securities and Markets
  Learn the core features, market structures, and risk-return dynamics of fixed-income securities. Explore issuer types, coupon structures, and how macroeconomic factors shape bond performance, with practical examples and insights for CFA® exams.
• Roles and Participants in the Bond Market
  An in-depth exploration of the key players involved in bond issuance, trading, and regulation, emphasizing how their roles interconnect to shape the global fixed-income landscape.
• Key Issuer Sectors and Classifications
  Understanding the diversity of fixed-income issuers, from sovereign to corporate, exploring credit ratings, regulatory frameworks, and real-world examples for informed bond investment decisions.
• Secondary Trading, Liquidity, and Market Regulation
  Explore how bonds trade in the secondary market, uncover liquidity considerations, compare market structures, and discover how regulations such as TRACE shape transparency in fixed-income.
• Electronic Trading Platforms and Market Innovations
  A comprehensive exploration of how electronic bond trading has evolved, the rise of specialized platforms, and the innovative technologies reshaping fixed-income markets.
• Bond Market Indexes and Benchmark Construction
  Learn how bond market indexes are constructed, the key methodologies providers use to compile them, and how they serve as essential benchmarks for evaluating portfolio performance.
• Impact of Global Macroeconomic Factors on Fixed-Income Markets
  Explore how global economic indicators, central bank actions, and investor sentiment drive bond yields, shape fixed-income strategy, and influence risk management.
• Market Liquidity Stress Events and Regulatory Responses
  An in-depth examination of liquidity disruptions, historical case studies, and regulatory strategies for stabilizing fixed-income markets.
• Emerging Market Debt and Currency Considerations
  Explore the risks, rewards, and practical considerations of investing in Emerging Market bonds, including currency exposure, liquidity constraints, and political risk.
• The Role of Fixed Income in Multi-Asset Portfolio Construction
  Explore how fixed-income instruments enhance portfolio stability, diversification, and strategic opportunities in a multi-asset framework.
• Digital Platforms for Retail Bond Investors and Settlement
  Explore how technology-driven platforms transform retail bond investing and settlement, enabling fractional ownership, faster KYC/AML compliance, and blockchain-based solutions for streamlined market access.
• Green Bond Indices and Climate-Aligned Debt Markets
  A comprehensive exploration of green bond indices, certified frameworks, and climate-aligned debt markets for CFA® Level I candidates seeking advanced insights into sustainable fixed-income instruments.
• Historical Perspectives on Major Bond Market Disruptions
  Explore key bond market upheavals, their root causes, and long-term impacts on regulations and investor behavior. Learn how crises—from Latin America in the 1980s to Europe in 2010—shaped modern risk management and shaped a more resilient marketplace.
• Big Data and Algorithmic Trading in Fixed-Income Markets
  Explore how vast datasets, machine learning, and algorithmic execution shape modern bond trading in this comprehensive CFA guide.
• Bond ETFs and Their Impact on Market Liquidity
  Explore how Bond ETFs enhance real-time tradability, examine premiums and discounts during stress periods, and understand creation/redemption processes that keep ETF prices aligned with their NAV.
• Global Clearing and Settlement Systems for Fixed Income
  Discover how global clearing and settlement mechanisms in fixed-income markets reduce operational risk and improve market efficiency, focusing on major international CSDs, RTGS systems, and emerging blockchain technologies.