The Investor's Guidebook to Fixed Income Investments: Bond Markets--A Handbook for Issuers and Investors

by Stuart R. Veale

Overview

A concise, yet comprehensive, guidebook that addresses the practical aspects of investing in fixed income investments

The Investor’s Guidebook series presents investment vehicles and strategies from both the issuers’ and the investors’ perspectives. Starting with basic concepts and then building to state-of-the-art pricing models, strategies, and tactics, these succinct handbooks will be useful for everyone from new hires through experienced professionals. Unlike most books, which are read once and sit on the shelf, professionals will refer to these books repeatedly throughout their careers.

Product Details

ISBN-13:	9780735205314
Publisher:	Penguin Publishing Group
Publication date:	12/03/2013
Pages:	256
Sales rank:	564,556
Product dimensions:	5.40(w) x 8.20(h) x 0.80(d)
Age Range:	18 Years

About the Author

Stuart R. Veale is the president and founder of the Investment Performance Institute Inc., a firm that specializes in providing advanced level practical capital markets training and consulting services to the financial services industry. Previously he was a senior vice president of portfolio strategy and design for the national sales group at Prudential Securities Inc. and senior vice president of advanced training at PaineWebber Inc. He has published six books including The Handbook of the U.S. Capital Markets, Bond Yield Analysis, Tapping the Small Business Market, Essential Investment Math, Essential Asset Allocation, and Stocks, Bonds, Options, Futures.

Table of Contents

Foreword xi

Preface xiii

1 Introduction to the Debt Market 1

2 Single Cash Flow Yield Calculations 25

3 Discount Instruments 42

4 Multiple Cash Flows 45

5 Basic Bond Yield Calculations 64

6 Bootstrapping the Zero Coupon Curve 82

7 Valuing Bonds Using the Zero Curve 86

8 Impact of Nonparallel Yield Curve Shifts 94

9 Interest Rate and Reinvestment Risks 97

10 Variables That Impact Duration 118

11 Modified Duration 130

12 Convexity 135

13 Credit Risk 150

14 Pricing Credit Risk 173

15 Passive Fixed Income Portfolio Management 185

16 Active Portfolio Management 197

Appendix A Derivation of Modified Duration 213

Appendix B Duration Program for an HP-12C Financial Calculator 219

Publisher's Note 223

Index 227