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Description of First Steps in Bonds

With uncertain and volatile stock markets making many investors cautious many are turning to bonds which, whilst being by no means risk free, are a lot less volatile than shares. Many professional investors routinely use bonds - often as a core constituent of a diversified portfolio - so it is only a matter of time before private investors do the same. First Steps in Bonds introduces readers to the key issues revolving around the bond markets. It covers in detail each of the main segments of the market -- government bonds, corporate bonds, Eurobonds and other types. Supported by illustrative stories, trading scenarios and worked examples, it will lead investors through the concepts whilst always keeping one eye on the reality of the markets. By cutting through all the jargon used by the professionals, the author provides you with the practical guidance and sensible strategies to enable you to trade in bonds with confidence. First Steps in Bonds cuts through the seeming complexity of bond markets and enables the reader to become familiar with bonds quickly and easily.
It teaches you: * what bonds are, how they differ from shares and why you should invest in them * how to analyze and value bonds, and the tools needed to make decisions about them * the external events and market technicalities that drive bond markets * techniques for dealing in bonds, selecting a broker, and finding information on bonds * the characteristics and advantages of collective investment in bonds * how to deal in government bonds through online dealing services. Peter Temple worked as a city analyst for 18 years, and has been a financial journalist for thirteen. He has also been an active and successful private trader for the past 15 years. First Steps in Bonds Take your first steps with confidence.

Title Information

ISBN:

9780273656579

Pages:

208 pages

Format:

Paperback

Product Code:

14012

Publisher:

Pearson Education Limited

Published:

20/09/2001

Edition:

1st Edition

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About Peter Temple

Peter Temple was born in West Yorkshire, and is a graduate of the University of Wales, a former member of the London Stock Exchange, and a Fellow of the Securities Institute. He spent the first 18 years of his working life in fund management and investment banking, turning to full--time writing in 1988. His articles cover a wide variety of investing topics, and appear regularly in the Financial Times, Investors Chronicle, Shares, International Fund Investment, and in a number of other publications and financial websites. He has written several other books on investing including First Steps in Shares and Traded Options, also published by Financial Times Prentice Hall.

Contents of First Steps in Bonds

Introduction

1. What bonds are and why you need them
- Bonds versus loans
- Bond markets
- Bonds versus shares
- Risk versus reward
- Bonds in your portfolio
- Bonds and financial market cycles

2. Bond basics
- Basic bond components
- Calculating a simple yield
- Compounding and discounting
- Rdemption yields
- Yield curves and spreads
- Duration

3. What drives bond markets
- Economic pronouncements
- Fear and greed
- Credit ratings
- Influence from other markets
- Curves and convergence
- Structural factors

4. Dealing in bonds
- How stockbroking works
- Which to choose?
- How to deal
- Alternative ways of trading
- Bond portfolio strategy

5. Investing in government bonds
- UK government bonds
- US government bonds
- Euro-zone
- Japan
- Other markets

6. Bond market oddities
- Index linked
- Floaters
- Zeros
- Convertibles
- Irredeemables
- Other

7. Eurobonds
- Short history of the Eurobond market
- How Eurobond underwriting works
- Eurobond pricing
- Eurobonds and emerging markets - a digression
- Types of Eurobond
- Accesibility of Eurobonds to the private investor

8. Corporate bonds
- Why companies issue bonds
- The corporate bond pecking order
- Corporate bonds for private investors
- Credit quality
- Junk bonds
- Distressed debt

9. Bond market information and how to get it
- Bond prices and analysis
- Economic data and commentary
- Aids for bond market mathematics

10. Collective investment in bonds
- Unit trusts
- Investing in unit trusts tax effectively
- Bond funds in general
- Specific fund choices and profiles
- Bond fund management groups' websites

Afterword: Where bond markets go from here
Appendix 1: Glossary
Appendix 2: Bond-related websites
Appendix 3: Further reading
Index