Table of Contents
Introduction 1
Part I Fundamental Principles of Bond Structure, Pricing, and Investing 5
Chapter 1 What Is a Bond? 7
Chapter 2 Nonplain Vanilla Bonds 17
Chapter 3 Bond Math-Without the Math 23
Chapter 4 Bond Investment Management 35
Part II Macroeconomics for Market Professionals 49
Chapter 5 How the Economy Works 51
Chapter 6 The Central Bank's Goals, Targets, and Operations 69
Part III Inflation, Yield Curve, and Credit Factors In Bonds 83
Chapter 7 Inflation-Protected Bonds 85
Chapter 8 The Yield Curve 97
Chapter 9 Corporate Bonds 115
Chapter 10 More on Corporates: Cyclicality, Collateral, and Convertibles 131
Part IV Analytical Tools and Techniques 143
Chapter 11 Carry, Rolls, Breakevens, and Recovery 145
Chapter 12 Measuring and Managing Interest-Rate Risk 159
Chapter 13 Convexity, Volatility, and Callability 175
Part V Libor-Based Securities and Derivatives 197
Chapter 14 Money Market Instruments 199
Chapter 15 Floating-Rate Notes 207
Chapter 16 Those Newfangled Floaters 215
Chapter 17 Interest-Rate Swaps 227
Chapter 18 How Institutional Investors Use Swaps 249
Part VI Foreign Trade and Investments 263
Chapter 19 Foreign Trade, Foreign Exchange, and Foreign Bonds 265
Chapter 20 Emerging Markets 289
Part VII Advanced Topics 299
Chapter 21 The Role of Dealers 301
Chapter 22 Repurchase Agreements 321
Chapter 23 Credit Derivatives: The Final Frontier 341
Chapter 24 Hedge Funds in the Fixed-Income Space 371
Notes 395
Index 445
