17. Advanced Topics in Fixed Income

In this section

• 17.1 Hypothetical Bond Portfolios and Strategies
  • Constructing Bond Portfolios for Different Investment Objectives
    Learn how to align bond portfolios with specific investment objectives such as income generation, capital preservation, and total return. Understand the influence of factors like investment horizon, risk tolerance, and tax considerations on portfolio construction.
  • Evaluating Performance Under Various Scenarios
    Learn how to evaluate bond portfolio performance using historical data, hypothetical market scenarios, stress testing, scenario analysis, and Monte Carlo simulations. Understand the impact of interest rate changes, economic downturns, and credit events on fixed income investments.
• 17.2 Fixed Income Attribution Analysis
  • Fixed Income Attribution Analysis: Analyzing Sources of Return
    Explore the intricacies of fixed income attribution analysis, a crucial tool for understanding portfolio performance. Learn about the components of returns, including interest rate, credit, currency, and security selection effects, and their impact on investment strategies.
  • Benchmark Comparison in Fixed Income Securities
    Explore the intricacies of benchmark comparison in fixed income securities, focusing on the selection of appropriate benchmarks, performance metrics, and the limitations of benchmarks.
• 17.3 Liquidity Risk Management
  • Measuring Liquidity Risk in Fixed Income Securities
    Explore the intricacies of measuring liquidity risk in fixed income securities, including key metrics like bid-ask spread, market depth, and trade volume, and understand their impact on portfolio valuation and execution strategies.
  • Mitigating Liquidity Constraints in Fixed Income Securities
    Explore strategies to manage liquidity risk in bond markets, including diversification, staggered maturities, and liquidity buffers, essential for investment success.
• 17.4 Ethical Considerations in Fixed Income Investing
  • Fiduciary Duties in Fixed Income Investing: Understanding Legal and Ethical Obligations
    Explore the critical aspects of fiduciary duties in fixed income investing, including the duty of loyalty and duty of care, regulatory requirements, and real-world scenarios.
  • Conflicts of Interest in Fixed Income Investing: Navigating Ethical Challenges
    Explore the complexities of conflicts of interest in fixed income investing, including soft dollar arrangements, personal trading activities, and client order precedence. Learn strategies for managing and disclosing conflicts to maintain trust and integrity in the investment industry.
  • Responsible Investment Practices: Integrating ESG Factors into Fixed Income Investing
    Explore the integration of ethical considerations into fixed income investment decision-making, including frameworks like the UNPRI and strategies such as negative and positive screening, engagement, and stewardship.