Thursday, January 5, 2012

Derivatives and Fixed Income CFA Level 2

Derivatives and Fixed Income CFA Level 2

To understand this topic we need to understand beta and duration very well:
  1. Beta comes from linear regression
  2. Whereas Duration comes from differentiation the YTM and bond equation
These two are used extensively to hedge the risks so you need to know them from their roots.

Then after these things we move to advanced areas like Financial Time series which is a part of Quant Finance. 

FRA Swaps and other pricing in derivatives are imp
FI is easier nothign new as such

Reading each line still becomes very imp

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