Naked Guide to Bonds: What You Need to Know -- Stripped Down to the Bare Essentials (Google eBook)

Front Cover
John Wiley & Sons, Dec 15, 2010 - Business & Economics - 256 pages
3 Reviews
Professional investors have long understood the importance of bonds in a successful portfolio strategy. Now you can too.

That's because Wall Street bond expert Michael Brandes takes a unique approach to this complex subject—he makes it simple. In Naked Guide to Bonds: What You Need to Know, Stripped Down to the Bare Essentials, technical jargon and complicated subject matter are translated into a straightforward, easy-to-read style with plenty of examples. What's more, rather than writing an all-inclusive book on the bond market, Brandes uses his expertise to eliminate the information that is not relevant to individual investors. The result is a practical and succinct guide that empowers you to make informed investment decisions.

Naked Guide to Bonds is written so that each chapter builds upon the information that precedes it. That way you'll never be thrown for a loop. It begins with basic questions such as: Who issues bonds, and why? And how are bonds bought and sold? Then you'll learn about the structure of these securities and the characteristics that distinguish them from stocks.

Once you're armed with the fundamentals, you'll discover how inflation, interest rates, and changes in the economy impact bond prices. Naked Guide to Bonds also provides insights about different types of bonds, including those issued by the U.S. government and its agencies, municipalities, corporations, and international issuers. Most importantly, you'll understand how to identify the bonds that are most appropriate for you.

In the final sections, you'll determine how to:

  • Assess your risk profile and set goals
  • Construct a portfolio to meet your objectives
  • Implement a customized strategy
  • Evaluate individual bonds and mutual funds
  • Monitor and maintain your portfolio
  • Avoid the most common mistakes
Filled with helpful charts and informative "Bare Essentials" summary points at the beginning of each chapter, Naked Guide to Bonds provides an effective way to become a smart and successful bond investor. Take a look for yourself and you'll see how enjoyable and rewarding learning about bonds can be.
  

What people are saying - Write a review

User Review - Flag as inappropriate

The best introductory book on bonds. Brandes' humour makes it a very easy read. It's also nicely organised.

User Review - Flag as inappropriate

well written

Selected pages

Contents

Why Bonds?
3
Who Issues Bonds? And Why?
5
How Are Bonds Bought and Sold?
11
Why Buy Bonds Rather Than Stocks?
15
Essential Parts
19
Price
21
Maturity
25
Coupon
29
Preferred Securities
131
Convertible Securities
137
US Savings Bonds
141
Certificates of Deposit
147
Funds and Unit Investment Trusts
151
Money Market Funds
159
Putting It All Together
163
Have an Informed Opinion
165

Yield
37
Credity Quality
43
Simplifying Key Concepts
45
Why Bad News Is Good News
47
Bond Prices and Interest Rates
51
Measuring Volatility
55
Armchair Economist
59
Evaluating Liquidity
65
Mainstays of the Market
69
Treasury Securities
71
Agency Securities
83
MortgageBacked Securities
87
Corporate Bonds
99
Municipal Bonds
109
International Bonds
121
Peripheral Players
129
Establish a Framework
169
Diversification
175
Interpreting the Yield Curve
179
Managing Volatility
183
Getting Down to Business
187
Bond Strategies
189
Fund Strategies
195
Bonds Funds or Both?
199
Preparing for Changing Rates
203
Swaps and Total Return
207
What Not to Do
211
Practical Matters
215
Wrapping Up
219
Glossary
221
Index
235
Copyright

Common terms and phrases

About the author (2010)

MICHAEL V. BRANDES is Director and Fixed-Income Strategist in the Investment Strategy Group at Smith Barney, a division of Citigroup. He is founding author of Bond Market Monthly, the firm’s flagship research publication for individual fixed-income investors. He also writes Citigroup’s widely popular A Stock Buyer’s Guide to Bond Investing and various research articles about fixed-income strategy. Michael earned a BA in English literature from the University at Albany (NY) and an MBA from Columbia University Business School in New York.

Bibliographic information