Debt and Derivatives

Andys

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Any pointers on studying debt and derivatives? Should those topics be given less priority? Please explain your views. THanks v much! --Andy
 
I was kind of wondering the same thing. I am using the CFA textbooks and haven't made it to that book yet but flipping through it I noticed that a lot of the reading is optional, especially with regard to options strategies. Could someone with Schweser tell me how the study notes handle this section? I guess it always helps to read more on a subject, but given the amount of time I don't want to waste too much time reading "optional segments"
 
I picked up "All about Derivatives" by Michael Durbin ISBN: 0071451471 - $12 bucks at Amazon.

I found it easiers to chew than my old finance textbooks and Schw. notes and audio. If you are new to the material or have not visited it in a while...I reco to pick this up. Speed thru this in 2-3 days and then hit the CFA books for math problems.
 
Well I passed L1, in June and I am well underway for L2. I am all the way to SS5 in Level 2 and getting through economics I will say that what you study for L1 is often the basis for L2 material (i.e. most of economics is application of international as well as macro economics, so you better know both, include F/X).

The nature of the L1 exam means that not every LOS can be studied, not every topic hit 110%. Derivatives are hit in L2 and L3 and are based upon the basics of the L1 material, so I will say know it all. The derivatives is important, especially the options materials, so know that (swaps are EZ in level 1, but without a good understanding swaptions will have you pulling out your hair). Overall the derivatives materials isn't that bad in L1, but of the stuff you need to know, you should learn it pretty well.

Fabozzi is hardcore bonds through and through and all the Fixed Income material is pretty comprehensive. I would say you should know everything for fixed income in level 1, cus if you don't got the basics (pricing, interest rate volitility, yield curves, yield spreads, bond markets, etc), you'll be up the creek without a paddle when you hit bonds with embedded options, asset-backed and mortgage backed securities and you hit Interest rate volitility harder.

*Rule of Thumb* understand all non-optional material. You'll thank me on exam day.
 
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