It is essential to establish a foundation in the concepts related to investing in fixed income securities. An important initial concept is measuring the proper yield and pricing this fixed income or debt securities. Each debt security will have unique features that help establish the riskiness of that fixed income security. For example, whether the security has a sinking fund provision and the credit worthiness of the issuing organization are important drivers of the risk of the security, which in turn drive the proper yield and pricing. Bond rating agencies form measures that reflect the riskiness of each fixed income security. AAA bonds are the highest rated and have the lowest risk; in turn, they will have lower yields in the market.

As a fixed income security analyst, we want to understand more fully the types of metrics that can be attributed to high and low rated debt securities. Research this issue using the required textbook chapter and beyond. Then, for this task you will prepare a presentation explaining the nature of the presentation within each slide for your fellow investment managers and staff. An important dimension to the presentation will be to capture and discuss the financial ratios that are most closely associated with differentiating ratings. As discussed above, there are other drivers to the differences as well; you will need to define those differences.

Your presentation should be in PowerPoint slide

PowerPoint Option

Incorporate appropriate animations, transitions, and graphics as well as “speaker notes” for each slide. The speaker notes may be comprised of brief paragraphs or bulleted lists. Support your presentation with at least five (5) scholarly resources. In addition to these specified resources, other appropriate scholarly resources may be included. Be sure to include citations for quotations and paraphrases with references in APA format and style where appropriate.

Length: 12-15 slides (with a separate reference slide)

Notes Length: 100-150 words for each slide