The Investor’s Guidebook is a concise, yet comprehensive, guidebook that addresses the practical aspects of investing in fixed income investments. It 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, this handbook 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.
Table of Contents
Foreword
Preface
Discount Instruments
Multiple Cash Flows
Bootstrapping the Zero Coupon Curve
Valuing Bonds Using the Zero Curve
Impact of Non-parallel Yield Curve Shifts
Interest Rate and Reinvestment Risks
Variables That Impact Duration
Convexity
Credit Risk
Pricing Credit Risk
Passive Fixed Income Portfolio Management
Active Portfolio Management
Appendix A: Derivation of Modified Duration
Appendix B: Duration Program for an HP-12C Financial Calculator
Publisher's Note