Book Description

This handbook is a comprehensive and authoritative reference for both senior policymakers—those responsible for the development of government bond markets in their own countries—and all individuals responsible for guiding the market development process at the operational level—those who have a substantial need to understand the policy issues involved. ... Read more

Book Description

BOND MARKETS Structure and Yield Calculations As cross-market bond trading has increased, it has become vital for international participants to understand the many different features that characterize the various international bond markets. Of particular interest to bond traders and investors are such factors as calculation of prices, accrued interest, yields, and durations.Bond Markets compares and contrasts all major bond markets with particular attention to:

**how different instruments are normally quoted **how much accrued interest is payable by the buyer in addition to traded price **the cost of a bond if quoted on a yield basis **normal settlement periods **rules for adjusting coupon rates **how yields are quoted and calculated ... Read more

Book Description

In 1991, Michael B. O'Higgins, one of the nation's top money managers, revolutionized the investment industry by asserting that investors could beat the pros 95 percent of the time by putting 100 percent of their money into the "dog" stocks of the Dow. His book, Beating the Dow, became a bestselling investment classic and spawned an industry of websites and mutual funds, elevating the theory to legendary status.

Now, with equities dangerously overvalued and stock prices at an all-time high, O'Higgins turns his attention to bonds, providing a proven system for achieving the lowest risk, highest returns in a chaotic stock market--requiring less than five minutes per year and helping you beat the pros 95 percent of the time, regardless of market conditions. Utilizing a simple, proven method for mastering the market by determining the best investment choices, Beating the Dow with Bonds evaluates companies and bond ratings, to help you achieve the highest risk-adjusted returns. For investors with as little as $5,000, Beating the Dow with Bonds provides a safer, more reliable opportunity to beat the Dow not just in today's market--but in any market.

Reviews (31)

Check this investment method carefully.
Are you interested in spending thirty minutes per year in order to trounce the Dow Jones Industrial 30 stocks by a factor of eighteen over a 29-year period? Michael O'Higgins, in his recent book, "Beating The Dow With Bonds", lays out a seventeen step method for doing just that, beating the Dow using a nearly risk free method. All the necessary information to follow O'Higgins new strategy is available in Barron's Market Week, and it will not take more than 20 - 30 minutes per year to make the calculations. What really grabs the reader is the stellar performance of this investment approach. Table 9.1 on page 150 contains all the data needed for analyzing O'Higgins new tactics. The cumulative return with this new system is 47,886 percent versus the DJIA's return of 2,640 over the same twenty-nine year time period. O'Higgins is well known as the co-author of "Beating the Dow". In BTDWB, he compares this new strategy with his former Dogs of the Dow approach. The results are impressive, as the new strategy will generate, as mentioned above, a 47,886 percent return versus 12,377 percent for a Beating the Dow Five-Stock's. Another advantage for this new investment scheme is, this can all be accomplished with less risk. O'Higgins asks the question, "Are these results too good to be true"? He claims they are not. On closer examination, these results are too go to be true.

The strategy necessary to accomplish such outstanding returns requires one to look up some easy to find data in Barron's. First, identify the S&P Earnings Yield % and compare this value with the 10-Year U.S. Government T-bond Yield to Maturity after making a minor adjustment of adding 0.30% to the T-bond Yield. If the S&P Earnings exceed the adjusted bond yield, then it is time to select the five Dogs of the Dow (DOD) stocks. O'Higgins reviews the DOD process he originally laid out in his first book. If the adjusted bond yield is higher than the S&P 500 yield, then it is time to look up information on the 'Gold Indicator'. If the one-year change in the price of gold is higher than it was one year ago, then invest 100 percent of your portfolio in U.S. Treasure bills due to mature a year from now. If the one-year change is lower than the price of gold one year ago, then invest 100 percent of your portfolio in the highest yielding U.S. government zero coupon bonds available that are due to mature in twenty years or more. O'Higgins lays out all seventeen steps (there are actually about eleven or twelve critical steps) in great detail. The above description is only to explain the bare bones approach of his recent thesis. Note that the 0.3% correction is a "soft" number. Reading O'Higgins one might accept this as a rigid value.

One becomes suspicious of this strategy when O'Higgins moves investors out of the stock market beginning in 1981 and keeps them in either bonds or T-bills right through the greatest bull market of the century. How can this be so? It all comes down to uncommonly outstanding performance in two of the 29 years; his 30-year zero coupon bonds yielded 156.12% and 106.90% in 1982 and 1985, respectively. If one returns those stellar bond years to the DJIA return of 25.79% (1982) and 32.78% (1985), according to O'Higgins figures, then the DJI and BTD 5 Stocks both will out-perform O'Higgins new strategy. To build an overall investment philosophy where two years of outstanding performance is the key kicker is truly data mining.

Following O'Higgins BTDWB method, I ran the numbers for two consecutive weeks late in 1998. One week I was in 30-year Zero Coupon Bonds; the next week I was in stocks. Where you will have 100% of your portfolio positioned depends on the week you make your assessment. O'Higgins BTDWB strategy is simple and purports to generate excellent returns, both enticing to the novice investor. Nevertheless, it is a flawed system. With interest rates where they are today, it is highly improbable followers of this system will see future returns match the high historical returns. In addition to the fundamental flaws of this investment strategy, BTDWB needed a keener eye when it came to editing the book. Examples of this showed up on page 48, where the Price to Sales Ratio is given as: "To get the price to sales ratio, divide the sales per share figure by the stock's current market price". Price to Sales is the reciprocal of what is stated. Graphs are consistently lacking in fundamental information. On page 50, no units are provided for the y-axis and one of the graph lines is missing as there is a Small Cap value of $4,495.99 floating in space at the northeast corner of the graph. In Chapter 4, a brief case is made for investing in small cap stocks. O'Higgins tells us he will address, in the final chapter, when to be in small cap stocks. He never follows through with this information. The graph on page 106 does not contain any identifying information on the y-axis. Chapter 11 is nothing but filler. These are examples of numerous errors in the book.

Overall, "Beating the Dow with Bonds" is an interesting but flawed read. Both the novice and experienced investor would do well to go back to the fundamental analysis and hard work involved in investing. Forget the quick and simple methods espoused in the popular press.

Lowell Herr

Interesting...but confusing
I agree with much of what has already been said as far as the amount of filler and the editorial glitches. And can anyone figure out the last chart -- table 11.1? These numbers make no sense and don't even correspond with the info on table 9.1. I began the book with some excitement but ended up feeling very uncertain about the method.

Profitable, Pragmatic Advice for All Investment Scenarios
This is one of the few stock market books from the 1990s that will be read and appreciated many years from now. While silly stuff like "Dow 36,000" & Harry Dent quickly withers away, O'Higgins advice gains credibility every day in this apparently multi-year bear market. Several web sites (beartopia dot com & others) mention this book. Perhaps the book's title should have substituted "zero coupon bonds" for the word "bonds." Do look up the authors corrected list of investment steps here at Amazon, however, do not let the slightly sloppy editing deter you from learning this powerful investment advice. The more knowledgable one is of the market, the more one appreciates O'Higgins and his two works. This book's advice works in bull and bear markets.

Not very good, but....
The book was not very well written, and why he felt the need to devote 70 pages describing in copious detail all 30 of the Dow stocks is beyond me. However, his 30 year zero-coupon analysis does have something going for it, and the inflation rate is a good predictor for a change in asset allocation.

10% of this book is education about Bonds; 90% stock basics
I bought this book because I wanted to learn more about investment products OTHER than common stocks. Instead, (in the book on tape), I got 5-10 minutes about the different types of bonds, a little detail about T-bills, and the frank admission that this book "doesn't really discuss corporate bonds". WHAT!? The whole rest of it is spent preparing you to run for cover for the upcoming crash of 2000 - for that, I must say he was prescient (Too bad I didn't read this in 1999!). More time is spent describing the basics of common stocks, and how the major industrial averages are calculated than is spent on bonds! Oh - and that WRONG formula for computing the price/sales ratio erroniously also made it onto the cassette version. I actually had to rewind the tape to see if I had heard correctly! ... Read more

Book Description

In today's go-go market, investors' attitudes toward risk--as well as toward bonds--have undergone a dramatic transformation. The new rules of bond investing are complex, often confusing, and if misunderstood, potentially expensive. BOND MARKET RULES provides concise, easy-to-read explanations--from investing fundamentals to advanced trading strategies--to give you a comprehensive overview of bond investing. In addition, it is an ideal fingertip reference to today's most trusted rules, helping you know at a glance how a bond should act in any given situation--and just as important, how you should act to protect your investments. Individually, any one of the 50 chapters in BOND MARKET RULES could save you a fortune in portfolio blunders and miscues. Collectively, they provide nothing less than the most comprehensive manual available on knowing the bond market inside and out.

For example: Chapter 3 discusses the true meaning and importance of the yield curve, a popular yet often misunderstood bellwether of possible changes in the economy. Chapter 16 explains the "ladder" strategy--and how it can provide liquidity for long- term bond investors, while minimizing the effects of reinvestment risk. Chapter 27 describes the pluses and minuses of the popular zero coupon bonds, and why they are often preferred for retirement investment accounts. Chapter 49 discusses the promising but volatile new "Brady" bond--what it is, how it works, and why February and March are often the most profitable months to buy a Brady.

Simply put, bonds should be a part of any diversified portfolio. In addition, new attitudes and investment products have made the fixed-income market as exciting and potentially rewarding as the stock market. By presenting and explaining the usefulness of today's top 50 professional bond trading rules, BOND MARKET RULES will tell you everything you need to know about this vibrant, potentially lucrative market. On its own, or in combination with author Michael Sheimo's other nuts-and-bolts guidebooks, it will give you a comprehensive knowledge of the fixed-income investment world, and show you the safest, most profitable ways to include bonds in your diversified portfolio. ... Read more

Reviews (1)

Good Beginner to Intermediate Book
I'm going to be short with this review but I liked the book enough to log into Amazon and at least attempt to write something. First, easy read. Second, good analysis of yield curves. Third, provided a basic understanding of the concepts. Enough to get started.

I am going to buy yet another book on Bonds. It goes into more depth on each type of bond and investing for income.

However, this book was a great start to the cloudy world of bonds and the vocabulary that goes along with it. ... Read more

Book Description

Managing a portfolio of mortgage-backed securities requires an understanding of the unique risk/return characteristics of these securities–and the use of specific tools for constructing a portfolio to satisfy investment objectives. Managing MBS Portfolios explores mortgage-backed securities and describes the wide range of agency and non-agency MBS available, while providing the analytical tools necessary to effectively manage portfolios.With Managing MBS Portfolios you can finally start enhancing returns on your portfolio and safely control risk at the same time. ... Read more

Book Description

In praise of Charlie D. "Falloon’s eloquent explication of the life of the legendary Charlie D delivers a good read while exposing that most under-publicized commodity of them all—a mega-trader with a low public profile whose superhuman trading abilities were exceeded by only one thing—the extended reach of his heart and soul." —Patrick H. Arbor Chairman, Chicago Board of Trade "Charlie D. is a tribute to the entrepreneurial spirit of Charlie D, whose legend still lives today on our trading floors. It also captures the essence of the men and women of Chicago who, working in a unique environment, through their trading provide economic benefits around the world." —Thomas R. Donovan President and Chief Executive Officer Chicago Board of Trade "Charlie D was unique—a poker-faced, unemotional, swashbuckling trader every other trader seeks to emulate. At the same time, he was also a model of trading integrity and one of the most generous people I have ever known. Whether trading or gambling, vacationing with family or golfing with superstars, he did everything with a special flair and spirit. Charlie was truly larger than life." —Thomas DeMark Author of The New Science of Technical Analysis and New Market Timing Techniques "Falloon captures the essence of the Charlie D I knew and rekindles my memories of a larger-than-life individual—how he laughed in the face of cancer, his generosity, and his sense of humor." —Mike Manning Rand Financial Services, Inc. "Charlie D was the most dynamic trader I’ve ever seen in my nineteen years in this business, and, beyond that, the best human being I’ve known." —Tom Fitzgerald TPF Trading ... Read more

Reviews (15)

Can you hold and add to a winning position?
The meat is in Charlie D's lecture, a little foreplay before, nothing later on. The rest of the book looks like it is written for the Sports Illustrated book of the month club.
"The principles of trading are the same if you're trading 10,20,50 or 100 contracts at a time, or if you're simply trading one. But it takes less time to make more money when you're a larger trader."
When Charlie figured out trading calendar spreads was the most consistent way to make money he mastered the concept and started trading 50-lots at a time instead of always living in fear of losing money trading 1-lots.
He took little blips out (of the market) with enormous size.
Everybody's trading price relationships, you have to have a position on to earn a living. The bigger the position the less time it takes and the more you earn. Always challenge yourself to do it bigger and better and with more size.
"The longer time you serve ... with a position on, the more you know about yourself and the more you know about trading."
"One of the most important things you learn with positions on is how to get out of a trade. You have to take losses today so that you can come back tomorrow."
"The time you know you've become a good trader is that first day you were able to win by holding and adding to a winning position."

I've read this book, over and over again...
I've had this book, for over five years. I pick it up, and read it again... every year. It's one of my favorite books.

The only "meat" for traders, is chapter six... "Charlie's lecture," and it's good.

But the book is much more than that, it's how to live well, and be good to people... with your wealth.

The book has some boring spots, but still, I enjoy reading it; every year or so.

Can you hold and add to a winning position ?
The meat is in Charlie D's lecture, a little foreplay before, nothing later on. The rest of the book looks like it is written for the Sports Illustrated book of the month club.

"The principles of trading are the same if you're trading 10,20,50 or 100 contracts at a time, or if you're simply trading one. But it takes less time to make more money when you're a larger trader."

When Charlie figured out trading calendar spreads was the most consistent way to make money he mastered the concept and started trading 50-lots at a time instead of always living in fear of losing money trading 1-lots.

He took little blips out (of the market) with enormous size.

Everybody's trading price relationships, you have to have a position on to earn a living. The bigger the position the less time it takes and the more you earn. Always challenge yourself to do it bigger and better and with more size.

"The longer time you serve ... with a position on, the more you know about yourself and the more you know about trading."

"One of the most important things you learn with positions on is how to get out of a trade. You have to take losses today so that you can come back tomorrow."

"The time you know you've become a good trader is that first day you were able to win by holding and adding to a winning position."

---0o0----

Fun Read
Charlie D is a wonderful biography that I could not stop reading. It helps put things into perspective. Investing and making money is one thing, but you have to live life as well otherwise you won't be able to appreciate your work and money. This book will give some motivation and help your psychological frame of mind, but will not directly help your stock picking and trading like the other books.

A BOOK ABOUT A COMMODITY TRADER WHO WAS VERY GENEROUS
This book will not present much in the way of market technique, except chapter 6 which gives some useful advice what would be better suited to floor traders than outside traders. The author explains all his attempts successful and unsuccessful to locate information about this legendary bond trader. Much of the book is concerned with Charlie's generosity towards everyone he met, whether it was a fellow trader or a cab driver.

An entire chapter is spent discussig the different types of cancer and I think that this was a bit too much on the subject Another chapter deals with the various types of drinking water in the area that Charlie lived and how this may have been a possible cause of the cancer that took him away from this world. Again, I think that this could be included but not to such great detail. However, the main theme is about a man who was very helpful and kind to everyone. Once chapter gives a full detailed picture of how Charlie treated everyone for his wife's 40th birthday party. ... Read more

Book Description

Written by three leading authorities in the field, Municipal Bond Portfolio Management provides a complete examination of municipal bonds, including a description of their credit features and techniques for assessing potential performance and valuation. With this thorough guide, you'll become more knowledgeable of the variety of municipal securities, their risk/return characteristics, redemption features and credit risk. Essential for traditional municipal bond portfolio managers, investment advisors and crossover buyers, Municipal Bond Portfolio Management: describes various bond types and features, including refunded bonds, insured bonds and derivative securities; provides coverage of new and innovative structures with unique credit risk and investment characteristics; identifies the important aspects of credit analysis, including common mistakes made by investors and issuers. ... Read more

Reviews (1)

Must Reading for Those Interested In Municipal Bonds
The Fabozzis and Feldstein have, once again, produced a most helpful book which any municipal bond investor, portfolio manager, public official, or investment banker will want to own. From the mathematics to the markets to the mechanics, the authors open up the all too arcane world of public bond finance for both the professional and average investor. Detailed, thorough, accessible, comprehensive and logical. ... Read more

Book Description

To become successful in the bond options market, it is important for professionals to gain a basic, yet thorough understanding of how options are priced, traded, and used in interest-rate risk and fixed-income portfolio management. Provides practical answers to questions that new participants will ask as they become more sophisticated in the bond option market. It describes the U.S. government bond options markets and discusses how options pricing and computer technologies are used in market-making, strategic trading, and value investing. After introducing standard options terminology, itprovides background data on U.S. Treasury bonds, bond options pricing models, advanced pricing models, the fundamentals of bond options dealing, strategies driven by interest rate forecasts, the most widely used structured portfolio strategies involving options, and more. ... Read more

Reviews (1)

A GOOD BOOK ON THE "ACADEMICS" OF BOND TRADING
As a bond trader, I find this book highly academic in its content rather than be a sort of trader's manual. It sounds more like the stuff to be r4ead by bank managers and portfolio managers but not too interesting for the average options speculator.

It therefore provides an education into how the market works. The difference can be seen by comparing a manual that tells you how to drive a car and another one that describes all the parts and tell you how what works.

Therefore purchasers of this book should know what they want. For an academic treatment, it is probably the best book. From a trading standpoint of practical use it may be useful but less than some might expect. ... Read more

Book Description

The Bond Market is a thorough guide to the mechanics of the market for U.S. Treasury securities and their derivative products. It explains the art and science of trading bonds for maximum profit with controlled risk, and illustrates how the best traders apply sound theoretical techniques under battlefield conditions. This is a valuable resource for readers with no prior knowledge of the bond market as well as those who want to enhance their understanding of bond theory with real-life trading tools and techniques. Specific topics include: how traders use mathematics to construct positions, in bonds or their derivatives, suitable for different market conditions and their own market risks; how traders determine the value of different securities and answers the critical question: Is bond movement random or can it be forecast? the consistent approaches used by successful traders that readers can apply quantitatively to analyze the risk/reward profile of any position. ... Read more

Reviews (4)

Useful and realistic
Book is great for those who want to know how bond trading really works, especially for those just starting out. Good for both salespeople and traders. However, the book is a decade old and has little on ETS and other recent developments. It also has many, many errors which are irritating, thus the 4/5. I should hope that these points are addressed in a second edition. It is otherwise well-written.

Excellent work - the best book to understand bond concepts
Ms.Ray focuses on providing a clear conceptual framework for understanding fixed income concepts. The approach is highly intuitive and reader-friendly. A must for anyone trying to get to grips with the concepts of duration, BPV, vols, forwards, etc....

An indispensable tool to a fixed income trader or broker
The Bond Market, by Christina Ray was one of the first books I read about fixed income securities that really explained how trading really is in the real world. I am happy to find another copy on ADC. This was used as a text in a class in Grad. school and I lost the book. Highly recommended.

Professionally written, and most of all PRACTICAL!!
An extremely well written, concise and sometimes humorous explanation of how the bond market really works. I worked at the Chicago Board of Trade, and it is my opinion that Christina Ray truly understood the complexities and practicallities of the bond market in its entirety. A must read for anyone who thrives on information pertaining to getting the "edge" in an extremely competitive environment. ... Read more

Book Description

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

Book Description

The Reuters Financial Training Series An Introduction to Bond Markets An Introduction to Bond Markets introduces novices to bonds, notes, derivatives and other instruments used in the world’s largest markets. Readers will learn how these products are traded and quoted in the financial markets. This comprehensive guide bridges the gap between academic texts that are often too theoretical, and the more technical practitioner’s works. Key features include:

• Introductory sections defining terms and giving background to theories
• Examples and calculations of various types of bond market instruments
• Summaries and overviews at the end of each chapter recapitulating key points and definitions
• Quick quiz questions and answers to reinforce learning
• Further resources which point to other books, articles and internet tools to widen readers’ comprehension and entrench their foundation in the subject.

Reviews (2)

Don't buy it!
You can't really use it. Huge amount of typos, omissions and errors. Just try to compute rate of return using formula from the book ROR = [(Selling price-1)/Buying price]*100. Buying for 90 and selling for 100 gives you a zero return rate, nice, isn't it. Worst book I've ever had.

Excellent title for self-training into a new job position
As a computer systems administrator, I usually support several applications without getting too involved in their inner workings nor with the business that they run. This book, however, allowed me to understand the bond markets and to be able to interact with computer users with definite knowledge and sure understanding of the business. The book is a cross between a text book and a do-it-yourself with examples. I couldn't have done it with out it. Next I'm ordering An introduction to Derivatives. ... Read more

Book Description

Inflation-protection bonds are specifically designed to hold their value in today’s uncertain economy. If you are unfamiliar with their specific attributes and uses, you may be missing out on one of the most powerful and versatile fixed income products in the marketplace today! In this detailed book, institutional investment officers John Brynolfsson and Anthony Faillace give you the most up-to-date research findings and information available on these uniquely conservative new instruments. This essential guide provides complete details on: How and why IPBs were created, with background information vital for you to ensure the value of your IPB investment; Strategies that you can easily use to profit from IPBs; and the role of IPBs in a global investment strategy. Inflation-Protection Bonds is the first book to explain both the benefits and the risks of one of today’s most intriguing and potentially productive investments. Its specific steps and recommendations will help assure that IPBs become a valuable addition to your investment portfolio. ... Read more

Book Description

"Belongs on every individual investor's shelf."--Smart Money

Standard & Poor's is recognized as the world's leading provider of securities information. Standard & Poor's Stock and Bond Guide, 2003 Edition, is a complete directory and performance guide to more than 14,000stocks, bonds, and mutual funds. Investors get all the vital data they need to make the most informed stock picks--including hard-to-find, detailed coverage of convertible and preferred stocks. ... Read more

Book Description

Tremendous growth in the trading of European bonds in U.S. markets has captured the attention of thousands of institutional investors, portfolio managers, futures, options, and bond traders. This outstanding resource provides a comprehensive and detailed discussion of the relationships between the various European bond markets and their respective bond futures contracts, called "the basis." Understanding the basis relationship is crucial to the successful utilization of these valuable instruments. The European Bond Basis covers all the major European Markets, including the U.K., France, Germany, Italy, and Belgium. It describes various analytical tools and approaches that professional traders and portfolio managers can utilize to meet their risk management and trading needs, and is sure to become the definitive reference to trading the European bond markets for U.S. fixed income professionals. ... Read more

Book Description

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. ... Read more

Amazon.com

During World War II, the U.S. Treasury Department mounted seven campaigns to sell bonds that helped fund the war effort. These campaigns, writes Lawrence R. Samuel in this illuminating work of social history, turned on a conception of Americans as a people united against Fascism, regardless of ethnicity, religion, or class. The pitch worked extremely well, raising more than $150 billion. It also raised expectations, especially among African Americans, that the pledge to fight racist policies abroad would apply to the home front as well. The 1942 Double-V campaign, in fact, included a slogan promising a commitment to fight democracy's enemies at home and abroad--a slogan that was dropped after certain politicians complained that it was subversive. Samuel makes tentative links between such progressive ideas and the birth of the civil rights movement, which adds to an already fascinating study. ... Read more