Fixed Income Analysis, Second Edition

INTRODUCTION

CFA Institute is pleased to provide you with this Investment Series covering major areas in the field of investments. These texts are thoroughly grounded in the highly regarded CFA Program Candidate Body of Knowledge (CBOK^®) that draws upon hundreds of practicing investment professionals and serves as the anchor for the three levels of the CFA Examinations. In the year this series is being launched, more than 120,000 aspiring investment professionals will each devote over 250 hours of study to master this material as well as other elements of the Candidate Body of Knowledge in order to obtain the coveted CFA charter. We provide these materials for the same reason we have been chartering investment professionals for over 40 years: to improve the competency and ethical character of those serving the capital markets.

PARENTAGE

One of the valuable attributes of this series derives from its parentage. In the 1940s, a handful of societies had risen to form communities that revolved around common interests and work in what we now think of as the investment industry.

Understand that the idea of purchasing common stock as an investment—as opposed to casino speculation—was only a couple of decades old at most. We were only 10 years past the creation of the U.S. Securities and Exchange Commission and laws that attempted to level the playing field after robber baron and stock market panic episodes.

In January 1945, in what is today CFA Institute Financial Analysts Journal ...