Topic 7 of 10 • CFA Level 1

Fixed Income

Bonds, fixed-income securities, and credit analysis

19
Subtopics
51
Learning Outcomes
11-14%
Exam Weight

Topic Overview

Fixed Income is one of the 10 major topic areas in the CFA Level 1 curriculum, representing approximately 11-14% of the exam. This topic area covers 19 key subtopics that form the foundation of fixed income knowledge required for investment professionals.

Understanding fixed income is essential for CFA candidates as it provides the fundamental concepts needed to analyze financial markets and make informed investment decisions. This topic area includes 51 specific learning outcomes that candidates must master for the exam.

Subtopics in Fixed Income

1

Fixed-Income Instrument Features

2 learning outcomes

2

Fixed-Income Cash Flows and Types

2 learning outcomes

3

Fixed-Income Issuance and Trading

3 learning outcomes

4

Fixed-Income Markets for Corporate Issuers

3 learning outcomes

5

Fixed-Income Markets for Government Issuers

2 learning outcomes

6

Fixed-Income Bond Valuation: Prices and Yields

3 learning outcomes

7

Yield and Yield Spread Measures for Fixed-Rate Bonds

2 learning outcomes

8

Yield and Yield Spread Measures for Floating-Rate Instruments

2 learning outcomes

9

The Term Structure of Interest Rates: Spot, Par, and Forward Curves

3 learning outcomes

10

Interest Rate Risk and Return

3 learning outcomes

11

Yield-Based Bond Duration Measures and Properties

2 learning outcomes

12

Yield-Based Bond Convexity and Portfolio Properties

3 learning outcomes

13

Curve-Based and Empirical Fixed-Income Risk Measures

4 learning outcomes

14

Credit Risk

3 learning outcomes

15

Credit Analysis for Government Issuers

1 learning outcomes

16

Credit Analysis for Corporate Issuers

3 learning outcomes

17

Fixed-Income Securitization

2 learning outcomes

18

Asset-Backed Security (ABS) Instrument and Market Features

4 learning outcomes

19

Mortgage-Backed Security (MBS) Instrument and Market Features

4 learning outcomes

Study Tips for Fixed Income

Recommended Approach

  • • Start with understanding key concepts before memorizing formulas
  • • Practice calculations with real-world examples
  • • Review learning outcomes to ensure complete coverage
  • • Take topic-specific practice quizzes regularly

Key Focus Areas

  • • Understand how this topic connects to other CFA areas
  • • Focus on high-weight subtopics for maximum impact
  • • Review past exam questions for this topic
  • • Create summary notes for quick revision

Ready to Master Fixed Income?

Practice with our comprehensive question bank featuring questions on all 19 subtopics and 51 learning outcomes.

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Other CFA Level 1 Topics

Ethical and Professional Standards
15-20%
Quantitative Methods
6-9%
Economics
6-9%
Financial Statement Analysis
11-14%
Corporate Issuers
6-9%
Equity Investments
11-14%
Derivatives
5-8%
Alternative Investments
7-10%
Portfolio Management
8-12%