Fixed Income

is kind of lame… The math isn’t bad but the "why’ is escaping me right now…just not clicking…brain is still on “not study” mode…

Someone on this forum suggests : don’t ask “why” (also “how”, in some cases) !

yup that’s me. The fixed income section don’t make sense at times. But it is possible to answer the questions correctly without understanding.

bell99 Wrote: ------------------------------------------------------- > yup that’s me. The fixed income section don’t make sense at times. But it is possible to > answer the questions correctly without understanding. Someone else also said : don’t ask “why” !

fixed income makes sense for me, but i run accross some other things that do not before i would spend tens of hours to get why, ten hours i could have used to master a study session… now i changed, my goal is to pass the exam, in the work force i will bust my ass to learn the WHY s of things relevant to my work, after all i will not be using all of the CFAI material… i am the kind of guy who wants to know the why of eveything, of medical, engeenering, yada yada… but i realised if thats how i live, i am never gona be happy, cause i am always trying to figure something out…i am gona know what i need to get paid, i aint trying to do down in books

I’m with you guys, I mean I just want to get it passed, but it is so much easier if I understand it…If I try to just memorize or get by, the material becomes overwhelming. If I “get it” then I can figure stuff on the exam, even if I cant recall the specifics of its formula or whatever…

^^I’m with you Rolo, That strategy certainly helped me on the last two levels. Besides I am really embarrassed when I talk to people at work and they say something like “What, you don’t know this?!? I thought you were a CFA candidate!” I really hate it when that happens.

fixed income is not that hard though, just remember the relative valuation and absolute valuation. relative just include the top down process, the market: interest parrellel shift, curve twist, the sector, economy, the investment target, which incorporates the spread:credit spread, maturity, , absolute value is simply the sensitivity: duration, convexity, change in interest rate. how to hedge, the futures to hedge, remainings are just stories. Charles