CFA Institute is the global association of investment professionals that sets the standard for professional excellence and credentials. The organization is a champion for ethical behavior in investment markets and a respected source of knowledge in the global financial community. The end goal: to create an environment where investors' interests come first, markets function at their best, and economies grow. CFA Institute has more than 170,000 members in 160+ countries and territories, including 163,000 CFA® charterholders, and 150+ member societies. For more information, visit www.cfainstitute.org.

• Preface xvAcknowledgements xviiAbout the CFA Institute Investment Series xixPART I: Fixed Income EssentialsCHAPTER 1: Fixed Income Securities: Defining Elements 3CHAPTER 2: Fixed Income Markets: Issuance, Trading, and Funding 45CHAPTER 3: Introduction to Fixed-Income Valuation 91CHAPTER 4: Introduction to Asset-Backed Securities 149CHAPTER 5: Understanding Fixed-Income Risk and Return 201CHAPTER 6: Fundamentals of Credit Analysis 257PART II: Fixed Income Term Structure, Advanced Valuation, and Credit AnalysisCHAPTER 7: The Term Structure and Interest Rate Dynamics 325CHAPTER 8: The Arbitrage-Free Valuation Framework 377CHAPTER 9: Valuation and Analysis of Bonds with Embedded Options 419CHAPTER 10: Credit Analysis Models 487CHAPTER 11: Credit Default Swaps 545PART III: Fixed Income Portfolio ManagementCHAPTER 12: Overview of Fixed-Income Portfolio Management 575 CHAPTER 13: Liability-Driven and Index-Based Strategies 617CHAPTER 14: Yield Curve Strategies  693CHAPTER 15: Fixed-Income Active Management: Credit Strategies 743Glossary 823About the Editors 841About the CFA Program 843Index 845

CFA Institute is the global association of investment professionals that sets the standard for professional excellence and credentials. The organization is a champion for ethical behavior in investment markets and a respected source of knowledge in the global financial community. The end goal: to create an environment where investors' interests come first, markets function at their best, and economies grow. CFA Institute has more than 170,000 members in 160+ countries and territories, including 163,000 CFA® charterholders, and 150+ member societies. For more information, visit www.cfainstitute.org.

• Preface xvAcknowledgements xviiAbout the CFA Institute Investment Series xixPART I: Fixed Income EssentialsCHAPTER 1: Fixed Income Securities: Defining Elements 3CHAPTER 2: Fixed Income Markets: Issuance, Trading, and Funding 45CHAPTER 3: Introduction to Fixed-Income Valuation 91CHAPTER 4: Introduction to Asset-Backed Securities 149CHAPTER 5: Understanding Fixed-Income Risk and Return 201CHAPTER 6: Fundamentals of Credit Analysis 257PART II: Fixed Income Term Structure, Advanced Valuation, and Credit AnalysisCHAPTER 7: The Term Structure and Interest Rate Dynamics 325CHAPTER 8: The Arbitrage-Free Valuation Framework 377CHAPTER 9: Valuation and Analysis of Bonds with Embedded Options 419CHAPTER 10: Credit Analysis Models 487CHAPTER 11: Credit Default Swaps 545PART III: Fixed Income Portfolio ManagementCHAPTER 12: Overview of Fixed-Income Portfolio Management 575 CHAPTER 13: Liability-Driven and Index-Based Strategies 617CHAPTER 14: Yield Curve Strategies  693CHAPTER 15: Fixed-Income Active Management: Credit Strategies 743Glossary 823About the Editors 841About the CFA Program 843Index 845

CFA Institute is the global association of investment professionals that sets the standard for professional excellence and credentials. The organization is a champion for ethical behavior in investment markets and a respected source of knowledge in the global financial community. The end goal: to create an environment where investors' interests come first, markets function at their best, and economies grow. CFA Institute has more than 170,000 members in 160+ countries and territories, including 163,000 CFA® charterholders, and 150+ member societies. For more information, visit www.cfainstitute.org.

• Preface xvAcknowledgements xviiAbout the CFA Institute Investment Series xixPART I: Fixed Income EssentialsCHAPTER 1: Fixed Income Securities: Defining Elements 3CHAPTER 2: Fixed Income Markets: Issuance, Trading, and Funding 45CHAPTER 3: Introduction to Fixed-Income Valuation 91CHAPTER 4: Introduction to Asset-Backed Securities 149CHAPTER 5: Understanding Fixed-Income Risk and Return 201CHAPTER 6: Fundamentals of Credit Analysis 257PART II: Fixed Income Term Structure, Advanced Valuation, and Credit AnalysisCHAPTER 7: The Term Structure and Interest Rate Dynamics 325CHAPTER 8: The Arbitrage-Free Valuation Framework 377CHAPTER 9: Valuation and Analysis of Bonds with Embedded Options 419CHAPTER 10: Credit Analysis Models 487CHAPTER 11: Credit Default Swaps 545PART III: Fixed Income Portfolio ManagementCHAPTER 12: Overview of Fixed-Income Portfolio Management 575 CHAPTER 13: Liability-Driven and Index-Based Strategies 617CHAPTER 14: Yield Curve Strategies  693CHAPTER 15: Fixed-Income Active Management: Credit Strategies 743Glossary 823About the Editors 841About the CFA Program 843Index 845