CFA® L3 — Derivatives & Risk Management
Hedging equity, currency, and rate risk; managing portfolios with futures, options, and swaps; tail-risk hedging strategies.
Quick info
- Layer
- Professional Certifications
- Track
- CFA® Level 3
- Estimated hours
- 30 hrs
- Chapters
- 4
- Exam body
- CFA Institute
- Cost on Trustner
- Free
The full chapter-by-chapter syllabus is published below so you know exactly what you're committing to. Individual lesson pages are being authored progressively over the coming weeks. Bookmark this page or browse all courses.
About this course
Hedging equity, currency, and rate risk; managing portfolios with futures, options, and swaps; tail-risk hedging strategies.
Who this is for
- CFA L3 candidates.
- Risk managers using derivatives overlay.
What you'll learn
- Equity and currency hedge construction
- Rate-risk management with futures and swaps
- Tail hedging — costs and benefits
Full syllabus — 4 chapters
- 1Reading 1
Equity hedging
- Beta hedging
- Protective puts and collars
- 2Reading 2
Currency hedging
- Forward contracts and proxy hedging
- Strategic vs dynamic
- 3Reading 3
Rate hedging
- Duration management with futures
- Swap-based hedges
- 4Reading 4
Tail-risk hedging
- Out-of-money option strategies
- Insurance vs self-insurance trade-offs
About the exam
- Provider
- CFA Institute
Note: ~5-10% of CFA L3 weight.
The exam is administered by CFA Institute. Trustner Academy is not affiliated with CFA Institute; we provide independent preparatory educational material. See our disclaimer.
More from CFA® Level 3
CFA® L3 — Asset Allocation
Strategic and tactical asset allocation, capital-market expectations, the IPS, currency management. Heavy in the L3 essay paper.
CFA® L3 — Portfolio Construction
Active vs passive choice, factor investing, manager selection, ETF use, taxes, and the mechanics of building and rebalancing a real portfolio.
CFA® L3 — Performance Measurement
Attribution, benchmarking, risk-adjusted returns, the GIPS Standards. Measuring what a manager actually delivered.
CFA® L3 — Fixed Income Portfolio Management
Liability-driven investing, immunisation, yield-curve strategies, credit strategies — fixed income from the portfolio manager's seat.