Fundamentals of the Bond Market

Fundamentals of the Bond Market gives you the tools you need to master this complex market so you can diversify your portfolio, and get reliable income and safety of principal. Author Esme Faerber has packed this guide with examples, quizzes, checklists, and plain-English explanations to enhance your understanding of everything from the basics of buying and selling to bond ratings, government and international securities, call and convertible features, portfolio management, and more.

Introduction:

Fixed income investments are difficult for most beginning investment professionals and investors to understand. This is partly due to the greater focus given to stock investments and their management in college courses. As a result, many beginning investment professionals and individual investors are not as comfortable with bond investments as they are with their stock investments. The intent of this book is to build an understanding of the different types of bond products, the factors that affect their performance, and how they fit into investors’ portfolios.

Many of the chapters include discussions with regard to the different strategies and how investors can take advantage of changing conditions in the bond markets. Several themes are consistent throughout the chapters in the book. These are as follows:

1. A discussion of the basic concepts in each chapter.
2. An integration of the theory discussed with practical applications.
3. Exercises and worksheets to familiarize the readers with the theoretical and practical concepts discussed in each chapter.
4. The term investor is used in a broader context to include entry level professionals along with individual investors.
5. References to the Internet are made whenever it is perceived to be helpful to investors. These references are current. However, due to the rapid growth of the Internet, these references over time may change due to new Internet sites. The purpose of introducing the use of the Internet is to familiarize investors with this medium so that they can become more accomplished in their usage and exploration of this tool.

Bonds are not riskless investments. By understanding the factors that affect their valuation, investors will be more comfortable investing and holding these securities.

Contents:

• Origins: The Markets and Their Beginnings
• Basics: Terms, Definitions, Trends, and Policies
• Beginnings: What Affects Prices?
• Categories: Types of Bonds
• Trading: Buying and Selling Bonds
• Analysis: Evaluating Bond Characteristics
• Risk versus Return: Enhancing Investment Performance
• Diversifying: Bond Mutual Funds
• Managing a Bond Portfolio
• Brokers: Investment Companies and Services

Fundamentals of the Bond Market By Esme Faerber pdf