Bond Markets, Analysis, and Strategies, tenth edition

The updated edition of a widely used textbook that covers fundamental features of bonds, analytical techniques, and portfolio strategy.


This new edition of a widely used textbook covers types of bonds and their key features, analytical techniques for valuing bonds and quantifying their exposure to changes in interest rates, and portfolio strategies for achieving a client's objectives. It includes real-world examples and practical applications of principles as provided by third-party commercial vendors. This tenth edition has been substantially updated, with four new chapters featuring material on bond price volatility, corporate bond portfolios, interest rates, and trading bonds. A new appendix covers the Investment Management Agreement, a legal document between a bond portfolio management company and client.

The book covers the basic analytical framework necessary to understand the pricing of bonds and their investment characteristics; sectors of the debt market, including treasury securities, residential mortgage-backed securities, asset-backed securities, and collective investment vehicles; methodologies for valuing bonds, including interest rate modeling and lattice method for valuing bonds with embedded options; corporate bond credit risk; portfolio management, including the fundamental (discretion) and quantitative (scientific) approaches; and instruments that can be used to control portfolio risk, including interest-rate swaps, caps, and floors.