Fixed-Income Instrument Features

Free CFA Level I lesson in Fixed Income. 10 min read, ~1,553 words.

Core features: issuer, maturity, par value, coupon rate and frequency, currency, seniority, embedded options. Coupon structures: fixed, floating, zero, step-up, deferred, and inflation-linked. Seniority ranks claims from secured down to junior subordinated; most investment-grade corporates are senior unsecured. Indenture = legal contract between issuer and bondholders, enforced by a trustee...