Fixed-income securities

Author: Lin Qingquan, Editor-in-Chief
Publisher:
Publish Date: 2005-02-01
Features: Similar to the development level of fixed-income securities markets, China's theoretical research and application in fixed-income securities are still in the initial stage. Currently, domestic textbooks on fixed-income securities primarily introduce basic knowledge about bonds or provide a macro-level overview of China's bond market, with a focus on qualitative descriptions. They thoroughly explain the theory of interest rate term structure, the pricing theory of fixed-income securities, and the characteristics of fixed-income securities. Specifically, the content of this textbook mainly includes the following parts:
Part 1: Basic knowledge of interest rates. The book starts by introducing the time value of money, covering the calculation of spot rates, forward rates, and discount factors, as well as their interrelationships. On this basis, it introduces the theory of interest rate term structure.
Part 2: Pricing theory of fixed-income securities. For fixed-income securities with fixed cash flows, multiple pricing methods can be used, including discount factors, spot rates, forward rates, and yield to maturity. For pricing fixed-income securities embedded with options, it essentially involves pricing interest rate derivatives, with the main methods being arbitrage-free pricing and risk-neutral pricing.
Part 3: Quantitative description of some characteristics of fixed-income securities, including PVBP, duration, and convexity.
Part 4: Introduction to fixed-income security products, covering government bonds, municipal bonds, international bonds, asset-backed bonds, mortgage-backed bonds, as well as some derivative products of fixed-income securities. It also introduces China's fixed-security market.
Part 5: Investment strategies for fixed-income securities.