Deep Dive: CFA® Level I Prep 2026

Boot-strap spot curves, derive par & forward rates, and flip between them to price bonds or swaps. Finish with curve shapes and what they signal about growth, inflation and policy.

Floating notes aren’t risk-free. We calculate money-market yields, discount margins and quoted margins, then see how caps, floors and reference-rate changes alter valuation.

Deconstruct quoted yields: street-convention, bond-equivalent, periodicity tweaks and callable-bond option-adjusted spreads. Learn when each metric best explains risk-adjusted return.

Discount every coupon like a pro. Topics include PV with spot curves, YTM conventions, full vs. flat price, constant-yield price paths and matrix pricing when comparable issues are thinly traded.

Survey sovereign T-bills, notes & bonds, plus quasi-govt, municipal and supranational paper. We show auction formats, benchmark curves and the unique tax, liquidity and policy roles these securities play worldwide.

Short-term working-capital lines, ABCP, bank revolvers and repos vs. long-term IG or HY bonds—this module links funding choices to credit strength. Walk through loan covenants, backup liquidity lines and why HY issuers rely on collateral and call protection.

From roadshow to re-offer we track a new issue’s life, then dive into secondary-market micro-structure. Understand broad vs. sector indexes, turnover math and why liquidity clusters in the newest (“on-the-run”) paper. We also compare primary auctions, syndications and private placements.

Go beyond plain-vanilla coupons. We map amortizing schedules, sinking-funds, FRNs, zeros, linkers and deferred-coupon bonds. Compare issuer pros & investor cons, then learn how contingency features—calls, puts, converts—reshape risk/return for both sides of the deal.

First stop on the bond tour: what exactly are you buying? We break down issuer types, par value, coupons (fixed vs. floating), seniority in liquidation and the covenants that legally bind the borrower. See how each feature shapes cash-flow timing and default risk, and why investors demand different yields for different structures.

The capstone module—linking cash flows to price. Inside you will: Contrast dividend discount, FCFE and Gordon growth models. Build multi-stage models and reconcile to market multiples. Use asset-based and enterprise-value approaches. You’ll graduate able to triangulate value from first principles and market sentiment.

Turn history into forward numbers: Define forecast objects, horizons and scenario design. Model revenues, costs, working capital and capex. Stress-test with sensitivity & scenario analysis. The result: defensible pro-formas ready for valuation.

No company operates in a vacuum. This module teaches you to: Navigate third-party and custom industry classification schemes. Size markets, gauge growth and benchmark profitability. Apply Five-Forces and external factor checklists. You’ll pinpoint where a company sits on the competitive map—and why that drives valuation multiples.

A forensic look at a firm’s historical performance: Dissect business models and revenue drivers. Classify costs, analyse working capital and capital structure. See how analysts craft the classic research report. Mastering the rear-view mirror sets the stage for credible forward forecasts.

Dive into the world’s dominant asset class. Grasp what equity really represents and why its risk-return profile is unique. Highlights: Common vs. preferred vs. private shares. Domestic, cross-border and DR structures. Return drivers, ROE and cost of equity. These building blocks are the foundation for later valuation work.

From the Efficient Market Hypothesis to behavioural anomalies, this module asks, “Can you really beat the market?” Key topics: Forms of efficiency and their testable implications. Limits to arbitrage & trading costs. Time-series, cross-sectional and behavioural anomalies. You’ll leave with a balanced view of when active skill adds value—and when indexing rules.

This module lifts the hood on the benchmarks we quote every day. You will: Learn the math behind index levels, single-period & multi-period returns. Contrast weighting schemes—and see why rebalancing & reconstitution matter. Survey equity, fixed-income and alternative-investment indexes and their uses as gauges, proxies and model portfolios. By the end, an index’s construction secrets—and...

Why this matters: Every analyst’s idea eventually becomes a trade. This module maps the entire trading landscape—from the six core purposes of the financial system to the mechanics of orders, leverage and regulation. Compare quote-, order- and broker-driven markets. Walk through an IPO, margin call and short sale step-by-step. See how regulation underpins liquidity, transparency and fair dealing....

Build a three-statement model from revenue to valuation, bias-aware. Sales-based pro forma income, cash-flow & balance-sheet build. Behavioral biases and how to mitigate them in forecasts. Impact of competitive forces, inflation/deflation and long-term horizons.

DuPont, ratios, regressions—turn numbers into stories and valuation inputs. Five ratio buckets & DuPont 3- and 5-step analyses. Cross-sectional vs. trend and common-size statements. Graphing and simple regressions for relationship testing.

Spot bias, earnings management and GAAP departures before they wreck value. Quality spectrum: decision-useful to non-GAAP. Motivations & conditions for low-quality reporting. Detection toolkit: revenue, inventory, capitalization, CF vs. NI gaps.

Temporary vs. permanent differences, DTAs/DTLs, and real cash-tax impacts. Book vs. taxable profit reconciliation. Valuation allowance clues. Effective rate bridges and planning red flags.

Leases, pensions, share-based comp—convert off-BS promises into debt-like risk. IFRS 16 / ASC 842 lessee & lessor accounting. Defined-benefit vs. defined-contribution plans. Stock grants, options and dilution math. Key presentation and disclosure checkpoints.

PP&E, intangibles, leases—track the asset life-cycle from acquisition to impairment. Purchased vs. internally developed intangibles. IFRS & GAAP impairment tests and reversals. Derecognition and key disclosure nuggets.

LIFO, FIFO, write-downs—see how inventory choices sway cost and margin. IAS 2 vs. ASC 330 valuation methods. Inflation/deflation impacts & LIFO reserves. Key turnover and gross-margin signals.

Dive deeper: free cash flow, common-size cash flows, and liquidity ratios. Evaluate sources & uses across operations, investing, financing. Calculate FCFF, FCFE and coverage ratios. Spot cash-flow red flags before the income statement does.