Table of Content
Contents
Page no.
Introduction
5
Tutorial 1
6

Concept of Fixed Income
Tutorial 2

Interest rate movements and fixed income investments
Tutorial 3

15-16
Concept of credit risk
Tutorial 7

13-14
Fixed Income Markets in India
Tutorial 6

11-12
Bond maturity and interest rates
Tutorial 5

9-10
Bond price and interest rates
Tutorial 4

7-8
17-18
Credit risk explained by SBI rating downgrade
Tutorial 8
19-20
 Sovereign debt crisis explained in bond market terms
Tutorial 9
21-22
 Corporate bond market in India
Tutorial 10
23-24

How can investors access the corporate bond market in India?
Tutorial 11
25-26

Fixed income schemes of mutual funds
Tutorial 12

Government bond market in India
Tutorial 13

45-46
Characteristics of government bonds
Tutorial 22

43-44
RBI policy tools defined
Tutorial 21

41-42
Factors affecting liquidity
Tutorial 20

39-40
Liquidity
Tutorial 19

37-38
Money market securities-Commercial Papers and Certificate of Deposits
Tutorial 18

35-36
Money market securities
Tutorial 17

33-34
Types of debt securities
Tutorial 16

31-32
Government bond auctions and its effect on interest rates
Tutorial 15

29-30
Government borrowing and its effect on interest rates
Tutorial 14

27-28
47-48
Characteristics of government bonds- concept of accrued interest
Tutorial 23
49-50

Characteristics of corporate bonds in India
Tutorial 24

Deep discount and Zero coupon bonds
Tutorial 25

61-62
Upward sloping yield curve in Japan and Germany
Tutorial 30

59-60
Upward sloping yield curve in the US
Tutorial 29

57-58
Practical guide to yield curve shapes
Tutorial 28

55-56
Yield Curves
Tutorial 27

53-54
Concept of Duration
Tutorial 26

51-52
Drivers of Indian bond yield curve
63-64
INTRODUCTION
The thirty part series of Tutorials on Fixed Income Investing is designed for one who has some
understanding or even no understanding of fixed income markets in India. The tutorials start with
explaining the theory of fixed income and this explanation is well supported by practical examples.
The fixed income theory is applied to the fixed income markets in India. The language used is simple
so as not to put off the layman from understanding fixed income investments.
At the end of the thirty part series of Tutorials on Fixed Income Investing in India, an investor will be
able to take informed decisions on fixed income investments. A student of fixed income will be able to
understand what is taught on fixed income in college in much more practical terms. A business
journalist will have much more fundamental knowledge of fixed income markets in India. A
distributor of financial products, a financial advisor or a financial planner will be able to give the right
information or advise to clients.
Arjun Parthasarathy, a specialist in Fixed Income Markets in India is the author of the Tutorials on
Fixed Income Investing Series. Arjun runs the longest running weekly fixed income column in India,
which is published in DNA Money. The column, which is meant to bring the esoteric world of fixed
income to the average reader, has been appearing in DNA Money since November 2005.
The Fixed Income Investing Series is brought to you by Investor are Idiots.com, the only financial
website that will make your money work for you. Website URL: www.investorsareidiots.com .
Testimonial from subscriber
Dear Mr. Arjun, I just went through the fixed income tutorials, it was terrific. The way you
have explained things, it’s so simple. I always shied away from fixed income as I never
understood them or I must say that there was no one to guide me about it but after reading
your tutorials and newsletters, you have made the complex financial markets easy to
understand. Hats off!! And keep up the good work!!!
Regards,
Abdul Qaadir Qureshi