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Fixed-income security features and cash flow structures

Fixed income · Lesson 1 of 5

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Lesson 1 of 5 · Fixed income

Fixed-income security features and cash flow structures

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Describe the basic features of a fixed-income security, including issuer, maturity, par value, coupon rate, payment frequency, currency denomination, and ranking in the capital structure.
Explain the provisions of a bond indenture and the roles of affirmative covenants, negative covenants, and legal protections for bondholders.
Compare principal repayment structures, including bullet, fully amortizing, partially amortizing, sinking fund, serial, and perpetual structures.

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Classify fixed-income securities by issuer and collateral type, including sovereign, quasi-government, corporate, and securitized issues, and distinguish secured from unsecured debt.

Interpret how coupon structure and payment features, including fixed-rate, floating-rate, zero-coupon, deferred-coupon, step-up, and inflation-linked structures, affect periodic and total cash flows.

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