An introduction to the bond markets / Patrick J. Brown.

Format:

Book

Author/Creator:

Brown, Patrick J.

Series:

Wiley finance series.

Wiley finance

Language:

English

Subjects (All):

Bonds.

Bond market.

Physical Description:

1 online resource (244 p.)

Edition:

1st edition

Place of Publication:

Chichester, England ; Hoboken, NJ : John Wiley & Sons Inc., c2006.

Language Note:

English

System Details:

text file

Summary:

This book gives an introduction to the bond markets for practitioners and new entrants who need to understand what they are, how they work and how they can be used, but do not want to be intimidated by mathematical formulae. By the end of the book readers will be able to decide whether to invest in the bond market. The mathematical formulae will be relegated to the appendices and supplemented by a companion website which allows users to enter their own bond market investments, to simulate anticipated events and see the results.Patrick Brown is well-known as Chairman of the European Bon

Contents:

An Introduction to the Bond Markets; Contents; Preface; Disclaimer; Introduction; 1 What is a Bond and Who Issues Them?; 1.1 Description of a Bond; 1.1.1 The Issuer; 1.1.2 Size and Currency; 1.1.3 Type; 1.1.4 Coupon Payments and Frequency; 1.1.5 Redemption Amount and Maturity Dates; 1.1.6 Embedded Options; 1.1.7 Guarantee; 1.1.8 Where Quoted and Traded; 1.2 The Difference between Corporate Bonds and Equities; 2 Types of Bonds and Other Instruments; 2.1 Fixed-Rate Bonds; 2.1.1 Straight Coupon Bonds; 2.1.2 Zero-Coupon Bonds; 2.1.3 Undated or Irredeemable Bonds; 2.1.4 Strippable Bonds and Strips

2.1.5 Bonds with Sinking Funds2.1.6 Step-Up or Graduated-Rate Bonds; 2.1.7 Annuities; 2.2 Floating-Rate Notes; 2.2.1 Undated or Perpetual Floating-Rate Notes; 2.3 Index-Linked Bonds; 2.4 Hybrid Bonds; 2.5 Other Instrument Types; 2.5.1 Treasury Bills; 2.5.2 Certificates of Deposit; 2.5.3 Commercial Paper; 2.5.4 Medium-Term Notes; 2.5.5 Preference Shares; 2.5.6 Permanent Interest Bearing Shares; 3 How Do You Price and Value a Bond?; 3.1 Compound Interest; 3.2 Discounting and Yield Considerations; 3.3 Accrued Interest; 3.4 How Bonds are Quoted; 3.5 Bond Pricing; 3.6 Yields and Related Measures

3.6.1 Current Yield3.6.2 Simple Yield to Maturity; 3.6.3 Redemption Yield; 3.6.4 Life and Duration; 3.6.5 Modified Duration; 3.6.6 Convexity; 3.6.7 Dispersion; 3.7 Floating-Rate Notes; 3.7.1 Simple Margin (FRN); 3.7.2 Discounted Margin (FRN); 3.8 Real Redemption Yield; 3.9 Money Market Yields and Discounts; 4 Bond Options and Variants; 4.1 Callable Bonds; 4.2 Putable Bonds; 4.3 Convertible Bonds; 4.4 Dual Currency Bonds; 4.5 Mortgage-Backed Securities; 4.6 Collateralized Debt Obligations; 4.7 Bonds with Conditional Coupon Changes; 4.8 Reverse Floaters; 4.9 Bonds with Warrants Attached

5 Yield Curves5.1 Yield Curve Shapes; 5.2 Zero-Coupon or Spot Yield Curves; 5.3 Forward or Forward-Forward Yield Curves; 5.4 Par Yield Curves; 5.5 Investment Strategies for Possible Yield Curve Changes; 6 Repos; 6.1 Classic Repos; 6.2 Sell/Buy-Backs; 6.3 Stock Borrowing/Lending; 7 Option Calculations; 7.1 Buying a Call Option; 7.2 Writing a Call Option; 7.3 Buying a Put Option; 7.4 Writing a Put Option; 7.5 Theoretical Value of an Option; 7.6 Combining Options; 8 Credit and Other Risks and Ratings; 8.1 Credit Risk; 8.1.1 Covenants; 8.1.2 Ratings; 8.2 Liquidity

9 Swaps, Futures and Derivatives9.1 Swaps; 9.1.1 Interest Rate Swap; 9.1.2 Asset Swap; 9.1.3 Cross-Currency Swap; 9.1.4 Basis Swap; 9.1.5 Forward Rate Agreement; 9.2 Credit Risk in Swaps; 9.3 Swaptions; 9.4 Futures; 9.5 Credit Default Swaps; 10 Portfolio and Other Considerations; 10.1 Holding Period Returns; 10.2 Immunization; 10.3 Portfolio Measures; 10.4 Allowing for Tax; 11 Indices; 11.1 Bond Index Classifications; 11.2 Choosing Indices; 11.3 Index Data Calculations; 11.4 Index Continuity; 11.4.1 Large Changes in the Constituents of the Index; 11.4.2 Gaps in Subindex Calculations

11.4.3 Bonds Dropped due to Lack of Prices

Notes:

Description based upon print version of record.

Includes bibliographical references (p. [215]) and index.

ISBN:

9786610519019

9781119206002

1119206006

9781280519017

1280519010

9780470030745

0470030747

OCLC:

77503153