2025 CFA© Program Curriculum Level 3 - PORTFOLIO MANAGEMENT PATHWAY - Volume 2

How to Use the CFA Program Curriculum
	CFA Institute Learning Ecosystem (LES)
		Designing Your Personal Study Program
		Errata
		Other Feedback
Portfolio Management Pathway
	Learning Module 1	Yield Curve Strategies
		Introduction
		Key Yield Curve and Fixed-Income Concepts for Active Managers
			Yield Curve Dynamics
			Duration and Convexity
		Yield Curve Strategies
			Static Yield Curve
			Dynamic Yield Curve
			Key Rate Duration for a Portfolio
		Active Fixed-Income Management across Currencies
		A Framework for Evaluating Yield Curve Strategies
		Summary
		Practice Problems
		Solutions
	Learning Module 2	Fixed-Income Active Management: Credit Strategies
		Introduction
		Key Credit and Spread Concepts for Active Management
			Credit Risk Considerations
			Credit Spread Measures
		Credit Strategies
			Bottom-Up Credit Strategies
			Top-Down Credit Strategies
			Factor-Based Credit Strategies
		Liquidity and Tail Risk
			Liquidity Risk
			Tail Risk
		Synthetic Credit Strategies
		Credit Spread Curve Strategies
			Static Credit Spread Curve Strategies
			Dynamic Credit Spread Curve Strategies
		Global Credit Strategies
		Structured Credit
		Fixed-Income Analytics
		Summary
		References
		Practice Problems
		Solutions
	Learning Module 3	Trade Strategy and Execution
		Introduction
		Motivations to Trade
			Profit Seeking
			Risk Management/Hedging Needs
			Cash Flow Needs
			Corporate Actions/Index Reconstitutions/Margin Calls
		Trading Strategies and Strategy Selection
			Trade Strategy Inputs
		Reference Prices
			Pre-Trade Benchmarks
			Intraday Benchmarks
			Post-Trade Benchmarks
			Price Target Benchmarks
		Trading Strategies
			Short-Term Alpha Trade
			Long-Term Alpha Trade
			Risk Rebalance Trade
			Client Redemption Trade
			New Mandate Trade
		Trade Execution
			Trade Implementation Choices
			Algorithmic Trading
		Comparison of Markets
			Equities
			Fixed Income
			Exchange-Traded Derivatives
			Over-the-Counter Derivatives
			Spot Foreign Exchange (Currency)
		Trade Cost Measurement
			Implementation Shortfall
			Expanded Implementation Shortfall
		Evaluating Trade Execution
			Arrival Price
			VWAP
			TWAP
			Market on Close
			Market-Adjusted Cost
			Added Value
		Trade Governance
			Meaning of Best Order Execution within the Relevant Regulatory Framework
			Factors Used to Determine the Optimal Order Execution Approach
			List of Eligible Brokers and Execution Venues
			Process Used to Monitor Execution Arrangements
		Summary
		Practice Problems
		Solutions
	Learning Module 4	Case Study in Portfolio Management: Institutional
		Introduction
		Background: Liquidity Management
			Liquidity Profiling and Time-to-Cash Tables
			Rebalancing, Commitments
			Stress Testing
			Derivatives
			Earning an Illiquidity Premium
		Quadrivium University Investment Company Case: Background
			Quadrivium University Investment Company
			Investment Strategy: Background and Evolution
		QUINCO Case: Strategic Asset Allocation
		QUINCO Case: Liquidity Management
		QUINCO Case: Asset Manager Selection
		QUINCO Case: Tactical Asset Allocation
		QUINCO Case: Asset Allocation Rebalancing
		QUINCO Case: ESG Integration
			Student Activity
			QUINCO ESG Approach
			QUINCO
			Investment Response
		Summary
		References
		Practice Problems
		Solutions
	Glossary