HomeCFACFA Level 3CFA Level 3 | Fixed Income: Expected Fixed-Income Return

CFA Level 3 | Fixed Income: Expected Fixed-Income Return

  • June 12, 2020
  • Posted by: Fabian Moa, CFA, FRM, CTP, AFM, FMVA, FSA Credential
  • Categories: CFA, CFA Level 3
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CFA Level 3

Topic: Fixed Income Portfolio Management

Reading: Overview of Fixed Income Portfolio Management

 

The expected fixed-income return decomposition is part of the topic Fixed-Income Portfolio Management in the CFA Level 3 syllabus.

In this video, I will go through the calculation of the expected return on a fixed-income investment, which comprises five components:
1) Yield income
2) Rolldown return
3) Expected change in price based on investor’s view on yield curve and yield curve changes
4) Expected credit losses
5) Expected currency gains and losses

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