Credit & Instrument Limits
Separate spread sensitivity from default, optionality, inflation and trading frictions.
Credit Spread Is Not a Default Probability
Separate a benchmark-relative yield difference from expected loss, recovery assumptions and the risk of an actual payment failure.
Spread Duration: Sensitivity Without a Default Forecast
Convert spread changes into first-order value estimates while preserving benchmark assumptions, basis-point units and the distinction from default loss.
Callable Bonds: Why Fixed Cash Flows Stop Being Enough
Identify the cash-flow, valuation and sensitivity assumptions that fail when an issuer can redeem a bond before its stated maturity.
Inflation-Linked Bonds: Fixed Rates, Variable Nominal Payments
Distinguish a fixed coupon rate from inflation-adjusted payment amounts, and examine real yields, principal floors and purchasing-power mismatches.
Liquidity and Transaction Costs: From Model Value to Usable Cash
Distinguish theoretical valuation from transaction proceeds, label cost allowances and avoid treating a recent price as guaranteed execution.