Practice: Credit and Markets
Twenty-five scored problems on credit analysis, credit spreads, high-yield bonds, municipal bonds, mortgage-backed securities, bond funds, and ladders.
What you'll do
This set works through the second half of Fixed Income in Depth. You'll calculate an expected loss, test a borrower's coverage in a bad year, rank ratings, turn a spread into a price change and an implied default rate, net a high-yield fund's yield for defaults, convert a municipal yield for tax, work out a loss on a middle tranche, and build and re-price a ladder. Each answer comes with the working, and your score appears as you go. Nothing is recorded outside this browser.
This draws on
Work through the problems in order and check each answer once you've committed to it. The score counts your first try. A calculator is expected. All the companies, bonds, funds, and numbers are hypothetical.
The problems in this practice set are for members
Inside, each with a worked answer: Credit analysis (7 problems); Credit spreads (5 problems); High-yield bonds (2 problems); Municipal bonds (4 problems); Mortgage-backed securities (3 problems); Funds and ladders (4 problems).
Membership opens every lesson in the curriculum, the capstone projects, the interactive tools, and the members-only channels in the Hyperion Entities Discord. The first lesson of every module stays free.