Planning Wealth

An informative overview of the nature of bonds and the functions of the bond house.

This handy title shows potential investors, and those with an interest in the bond markets, how to assess the risks and rewards and give criteria on which to base investment decisions. The following areas are included: Gilt Edge Bonds, Corporate Bonds, Convertibles, Index Linked Bonds, Zeros, Undated stocks, Euro Bonds, High-Risk Junk Bonds and Bond funds.

Learn to:

* Determine which bonds and gilts are carrying a premium and which a discount
* Diversify a portfolio to smooth delayed payments of interest
* Guard against default by the issuer
* Avoid the liquidity risk of rising rates
* Assess market risk.

The book is a systematic summary of modern term structure theories and how interest rate contingent claims are priced under such theories. This is the first book on such an attempt. The book reviews important term structure models and chooses one model to consistantly demonstrate contingent claim pricing. Well-known models are included and their relationships are thoroughly discussed. The book also provides a complete process of model implementation from parameter estimation to hedging. Examples are provided throughout.

Here is an easy-to-read, non-technical guide to the workings of the international bond market. It shows potential investors, and those who already have a stake in the bond markets, how to assess the potential risks and rewards, offering a simple-to-follow set of criteria on which to base investment decisions. Even the most arithmetic shy will learn how to calculate the yield on a bond and to plan an income-based portfolio. For the more seasoned investor, there are sets of bond strategies laid out so the reader can evaluate holdings and choose a suitable course of investment.

Valuation and Selection of Convertible Bonds offers practical guidelines for selecting convertible bonds and making efficient investment decisions. Based on modern option theory and the most recent developments in investment analysis (including a chapter on Euro-bonds), this sourcebook will prove invaluable to both professional investors and individuals involved with similar financial transactions.

Written for managers and professionals in business and industry, and using a minimum of mathematical language, The Management of Bond Investments and the Trading of Debt addresses three key issues:

• Bondholder’s options, risks and rewards in making investments in debt instruments;
• The dynamics of inflation, and how they affect both trading in the bond market, and investment decisions; and
• The democratization of lending, socialization of risk, and effect of the global economy on the bond market.

Financial expert Dimitris Chorafas discusses these issues in straightforward language for managers and professionals in commercial banks, securities houses, financial services companies, merchandising firms, manufacturing companies, and consulting firms, placing the mathematical treatment of the issues in the appendices, available for study but not necessary for understanding the business issues addressed in the book.

Focuses on new issues of central importance in bond and debt trading today

Uses clear, straightforward language for managers and professionals in business and industry, with mathematical treatment provided in appendices

Thorough treatment of operational risk new to books on this topic

Enlightening basics on the nature of bonds and the science of investing in them.

The financial sectors in South Asia Region (SAR) are dominated by commercial banks, which account for the vast majority of the financial system’s assets. The domestic debt markets including the government bond and corporate bond markets are at an early stage of development and there are few institutional investors. In recent years, countries in SAR have attempted to develop local debt markets, although the pace of development remains uneven and slow due to many regulatory and institutional impediments.With the notable exception of India, governments in SAR have yet to implement measures required for the proper development of the domestic bond markets. The book will provide a comprehensive overview of the major bond markets in SAR (Bangladesh, India, Nepal, Pakistan and Sri Lanka) highlighting the areas which need further reforms. It is hoped that the book will contribute to our knowledge of bond markets in South Asian countries and create a broad based ownership of the recommendations made by the authors.

The harmonisation of many European policies and the advent of the Euro has dictated a shift in the approach of fixed income investment. Although the risk of foreign exchange rate fluctuations has been removed, the need to diversify portfolios has meant traders looking beyond their traditional geographic areas and at a greater range of bond markets than ever before.

This comprehensive book explains how the bond markets work in each country of the euro zone and details the features and specifications of each type. The straightforward structure allows comfortable comparison between bonds in the respective countries and provides wide-ranging information needed to make informed investment decisions.

An ideal reference source, this will prove a useful companion for all investors.

Series of engrossing papers covering the analytical research on high-yield, noninvestment-grade debt market from public policy and regulatory/legislative aspects.

Real world investors differ in their tastes and attitudes and they do not have, in general, perfect information about the future prospects of the economy. Most theoretical models, however, assume to the contrary that investors are homogeneous and perfectly informed about the market. In this book, an attempt is made to overcome these shortcomings. In three different case studies, the effect of heterogeneous time preferences, heterogeneous beliefs and imperfect information about the economy’s growth on the term structure of interest rates are studied. The initial chapter gives an introduction to the theory of financial markets in continuous time under imperfect information and establishes the existence of an equilibrium with complete markets.

This timely book offers a detailed introduction to the workings of the largest government debt market in the world and the investment opportunities it provides. Wann outlines the history and development of the market, explaining how it operates and examining the parts played by dealers, investors, and the U.S. government authorities. The U.S. Treasury market is compared with the U.K. gilts market and its economic and political background is analyzed. An introduction to investment theory and analytical methods and futures and options contracts on treasury bonds, along with consideration of more advanced investment theory and strategy is also provided.