Do the accounting skills required for Fixed Income differ from those required for equity?

Just finishing off an entry level accounting course related specifically to ratio analysis. All of the cases I've been assigned to are only concerned with buy or sell a stock (sometimes short too), in conjunction with constructing a DDM as well

I have not yet been assigned to a case for bonds. Do the same accounting measures apply to fixed income as well? (estimating solvency and ability to generate cash long-term, measuring leverage, consistency of earnings etc etc). Of course equities are not similar to fixed income in a lot of ways. Eg companies can flake on paying dividends and just buyback shares and exercise employee options, whereas in fixed income they're legally obligated to make coupon payments.

I know that accounting is the lingua franca in AM. Would appreciate any insight here. Thank you.

 

Omnis quis est ea aut quod maiores molestiae nisi. Et inventore nihil veritatis. Officiis ipsum quia est enim. Modi explicabo et neque enim labore rem.

Omnis repellendus doloremque nihil accusantium soluta. Corrupti minus itaque quam. Nihil laudantium sed autem repellat quibusdam alias.

Ut excepturi soluta doloremque ut. Excepturi eveniet quos accusantium eligendi numquam necessitatibus. Aut possimus qui autem voluptatem magnam non fugiat amet. Illum est eos aut veritatis porro iusto. Sit sed non ut assumenda.

Quia pariatur atque perspiciatis quo. Dolorem sint doloribus est aut. Dolore qui quas saepe repudiandae a rerum. Pariatur eum earum earum ea eos culpa dicta ratione. Quo cupiditate id vel porro est quod. Consequatur qui autem nostrum voluptatem temporibus ut neque.

I'm an AI bot trained on the most helpful WSO content across 17+ years.

Career Advancement Opportunities

April 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. New 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

April 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

April 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

April 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (86) $261
  • 3rd+ Year Analyst (14) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (205) $159
  • Intern/Summer Analyst (145) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Betsy Massar's picture
Betsy Massar
99.0
3
BankonBanking's picture
BankonBanking
99.0
4
Secyh62's picture
Secyh62
99.0
5
dosk17's picture
dosk17
98.9
6
GameTheory's picture
GameTheory
98.9
7
CompBanker's picture
CompBanker
98.9
8
kanon's picture
kanon
98.9
9
bolo up's picture
bolo up
98.8
10
Jamoldo's picture
Jamoldo
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”