Intermediate
Duration convexity and interest rate risk
Maturity is a date. Duration measures sensitivity. Add convexity to understand why a straight line approximation becomes less reliable for larger yield changes.
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Bonds Explained
Understand bond cash flows, compare yields and assess the risks behind a repayment promise. Follow six learning stages from the first bond contract to a complete investment research case.
Start with What a bond is and how you get paid, then follow the next lesson links. Explore 24 lessons with worked examples, exercises and further reading.
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Risk and Credit Analysis · All lessons
Risk and Credit Analysis
Assess rate sensitivity, repayment capacity, liquidity and purchasing power.
Intermediate
How to assess an issuer’s ability to repay
Credit analysis asks where the repayment money will come from. Connect the business model, cash flows and maturity schedule before relying on a rating.
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Intermediate
Default recovery and liquidity risk
A bond can lose value before a missed payment. Separate default probability, recovery severity and the cost of finding a buyer.
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Intermediate
Currency inflation and real bond returns
A positive bond return can still buy less. Translate returns into your spending currency and adjust for inflation to measure the outcome that matters.
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