Chapter 0 0.1

Appendix

Full curriculum overview

Note: Chapters 3-7 are currently not yet available for public use. Links to these chapters are disabled until content is officially released.

Full Curriculum

0. Getting Started

Essential resources and guides before diving into JGBs

• 0.1 - Appendix: Quick Reference
• 0.2 - Data Sources and Transparency
• 0.3 - How to Use This App
• 0.4 - A Self-Updating Textbook
• 0.5 - Why Japan Matters Now
• 0.6 - Why Fundamentals Matter in Finance

1. Fixed Income Fundamentals

Universal bond concepts - no Japan-specific complexity

• 1.1 - What are JGBs?
• 1.2 - Key Characteristics of JGBs
• 1.3 - Understanding Yield (YTM)
• 1.4 - The JGB Yield Curve
• 1.5 - Reading the JGB Yield Curve
• 1.6 - Why Yield Curves Matter
• 1.7 - Risk-Free Rates and OIS
• 1.8 - Bond Pricing Fundamentals
• 1.9 - Bond Pricing Examples
• 1.10 - Day Count Conventions

2. Fiscal Framework & Governance

Fiscal policy, debt management, and governance frameworks

• 2.1 - Who Issues JGBs?
• 2.2 - How JGBs Are Repaid
• 2.3 - Japan's Tax Revenue Structure
• 2.4 - Budget Deficits and Debt Servicing
• 2.5 - Fiscal Sustainability Metrics
• 2.6 - Primary Balance: Japan's Fiscal North Star
• 2.7 - Japan's Primary Balance History
• 2.8 - International Assessment of Japan's Fiscal Position
• 2.9 - Sovereign Credit Ratings
• 2.10 - How the MOF Determines Issuance
• 2.11 - MOF Issuance Principles: Stability Over Cost
• 2.12 - Political Influence on JGB Issuance
• 2.13 - Current Political Context: Takaichi Administration
• 2.14 - Government Shutdowns: The U.S. Experience
• 2.15 - The Debt Ceiling: A U.S. Fiscal Constraint
• 2.16 - Japan's Fiscal Governance: No Debt Ceiling

3. Economic Context & Monetary Policy

Economic history, currency dynamics, and BOJ monetary policy framework

• 3.1 - The MOF-BOJ Relationship
• 3.2 - Japan's Foreign Exchange Reserves
• 3.3 - Currency Intervention Strategy
• 3.4 - Japan's Economic Journey: Miracle, Bubble, and Lost Decades
• 3.5 - Japan's Trade Balance and Import Dependencies
• 3.6 - Structural JPY Weakness
• 3.7 - Central Bank Swap Lines and Global Liquidity
• 3.8 - Why 2.0% Inflation Target?
• 3.9 - History of Japan's Monetary Policy
• 3.10 - BOJ Share of Outstanding JGBs
• 3.11 - Monetary Policy Meeting Schedule

4. JGB Markets

JGB market structure, auctions, futures, and repo

• 4.1 - BOJ-NET Infrastructure
• 4.2 - Primary Market: Auction Process
• 4.3 - BOJ Communication: Japanese vs English Documentation
• 4.4 - Issuance Schedules and Calendars
• 4.5 - Buybacks and Debt Management
• 4.6 - Market Participants and Dynamics
• 4.7 - BOJ Holdings and Market Structure
• 4.8 - JGB Futures Contracts
• 4.9 - Cheapest-to-Deliver Analysis
• 4.10 - Conversion Factors
• 4.11 - Inflation-Indexed Bonds (JGBi)
• 4.12 - JGB Repo Markets
• 4.13 - Debt Redemption Framework
• 4.14 - Auction Theory

5. Risk Management

Duration, convexity, and interest rate risk metrics

• 4.1 - Macaulay Duration
• 4.2 - Modified Duration
• 4.3 - DV01 - Dollar Value of a Basis Point
• 4.4 - Convexity
• 4.5 - Grid Point Sensitivity (GPS)
• 4.6 - Interest Rate Risk in Banking Book (IRRBB)
• 4.7 - Liquidity Risk

6. Economic Indicators

Key Japanese economic data that drive JGB markets

• 5.1 - Overview of Economic Indicators
• 5.2 - GDP and Growth Indicators
• 5.3 - Inflation Metrics
• 5.4 - Labor Market Indicators
• 5.5 - Trade and Balance of Payments
• 5.6 - BOJ Tankan Survey
• 5.7 - BOJ Outlook Report
• 5.8 - Housing and Mortgage Rates
• 6.9 - Elections and Budgeting

7. Advanced Pricing & Analytics

Advanced pricing models and analytics for JGBs

• 6.1 - Overview
• 6.2 - Carry Trades
• 6.3 - Curve Trades
• 6.4 - Butterfly Trades
• 6.5 - Basis Trades
• 6.6 - Arbitrage Relationships
• 6.7 - Advanced Concepts: Continuous Compounding
• 6.8 - Neutral Rates and Stagflation

8. Derivatives

Swaps, options, swaptions, asset swaps, and regulatory framework

• 7.1 - Overview of JGB Derivatives
• 7.2 - Interest Rate Swaps (IRS)
• 7.3 - JGB Options
• 7.4 - Swaptions
• 7.5 - Asset Swaps
• 7.6 - Benchmark Rate Reform
• 7.7 - OTC Derivatives Regulation
• 7.8 - TONA 3-Month Futures

9. Topics Under Exploration

Research in progress - timeline and placement TBA

• 9.1 - Wealth Inequality and Generational Divides
• 9.2 - The Rise of Non-Banks in JGB Markets
• 9.3 - Fiscal Sustainability vs. Political Reality
• 9.4 - Strategic Industrial Policy and JGB Issuance
• 9.5 - The Capitalism Debate: Stakeholder vs. Shareholder
• 9.6 - Stablecoins' Impact on Sovereign Bond Yields
• 9.7 - The Stagflation Era
• 9.8 - What Central Banks Target After Inflation
• 9.9 - Optimizing BOJ Communication: Translation & Volatility Reduction
• 9.10 - Gold's Recent Rally: Historical Context
• 9.11 - China: Opacity vs. Significance in Global Markets
• 9.12 - Fin-Fluencers League Table
• 9.13 - The Yen Carry Trade: Past, Present, Future
• 9.14 - A Financial Crisis with Non-Bank Financial Institutions?

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