Debt Markets and Analysis

Over the past two decades, the investment and management of bonds and debt securities by financial and non-financial institutions have experienced significant developments. Managing fixed-income securities in this dynamic investment environment requires a solid understanding of debt markets as well as the uses for an increasing number of securities, markets, strategies, and methodologies. R. Stafford Joh nson is well versed in the various aspects of this discipline, and now, with Debt Markets and Analysis, he shares his extensive insights with you. Written in a straightforward and accessible style, this practical guide provides both practicing financial professionals and students with an informative look at bonds and debt management that will take them from basic bond investment theories and fundamentals to a more in-depth understanding of their markets and strategies. And given the widespread use of the Bloomberg system, this book also includes detailed coverage of how Bloomberg information and analytical functions can be applied to the fixed-income and debt market topics addressed here. Divided into three comprehensive parts, Debt Markets and Analysis opens with an overview of the current investment environment and previews the Bloomberg system. Part One also examines bonds in terms of their characteristics, from value, rate of return, and types of risk to the investment management strategies associated with them. Part Two moves on to delineate the different debt securities and their markets in terms of the rules, participants, and forces that govern them, as well as investment strategies related to specific securities. Here, you'll become familiar with the types of, and markets for, government securities-Treasury, federal agencies, municipals, and sovereigns-learn about intermediary securities and investment funds, and discover more about mortgage-backed and asset-backed securities as well as securitization. Part Three rounds out the discussion with concise coverage of bond derivatives. It skillfully describes the markets, uses, and pricing of bond and interest rate futures and option contracts. Then it examines embedded options using a binomial interest rate tree and explores interest rate and credit default swaps. Debt Markets and Analysis is an essential guide to this important field. Combining fundamental and advanced topics with Bloomberg information and analytics, it provides you with a better understanding of the complexities and subtleties of the debt markets, and will put you in a better position to apply that knowledge to real-world investment decisions.