Last week I discovered an error in a diagram in the Fixed Income Attribution reading at the Expert Level of the CIPM curriculum.  I have made CFA Institute aware of the error and suspect they will issue a correction soon, but I want to make candidates aware of this in the meantime.

The error is in Reading 9 (Introduction to Fixed Income Attribution), in the diagram found in Exhibit 37, which depicts return contribution attributable to yield variation.  The picture has two errors:

• It shows “Passage of Time” as unconnected to the other return components.  “Passage of Time” should be shown as a “child” component of the “parent” box called “Estimated Return.”
• It shows “Spread Variations” as a “child” of the “Residuals” box.  “Spread Variations” should be shown as a “child” component of the “parent” box called “Estimated Return.”

Happy studying!