In Profiting from Fixed Income Securities: An In-Depth Guide to Investing in Interest-Rate-Sensitive Instruments, Wall Street veteran Reto Gallati presents the latest products, analytical tools, methodologies, and strategies for building the fixed-income component of any balanced and diversified portfolio. Judicious allocation among various types of fixed-income securities—ranging from government bonds to collateralized debt obligations—can deliver investors such benefits as regular assured cash flow, capital preservation, tax exemption, and mitigation of exposure to the volatility of the equities market.
Yet the size, complexity, diversity, and sensitivity of debt securities and their derivatives have increased so much in recent years that navigating today's fixed-income securities markets requires a thorough understanding of the many innovations and dependencies in this heterogeneous family of interest-rate-sensitive instruments. Drawing on thirty years' experience as the head of investments at Nuveen, deputy chief risk officer at Putnam, deputy CIO at Goldman Sachs, portfolio manager at Credit Suisse, and professor of finance at the business schools of the University of Chicago and MIT, Gallati imparts in this book an in-depth yet comprehensive understanding that will empower you to tailor an approach to fixed-income securities investment that is optimized for your portfolio in respect of its particular yield, return, strategy, safety, and availability criteria. Profiting from Fixed Income Securities lays out in lucid terms what investors in fixed income securities need to know to succeed.
Rigorously but accessibly, Profiting from Fixed Income Securities covers what sophisticated investors need to know about:
- Bond valuation, yield calculation, bond price volatility, high-yield bonds, municipal bonds, and flip-flop notes
- Interest-rate futures, options, swaps, and forward-rate agreements
- Asset-backed fixed-income securities, mortgage-backed securities, ETFs on fixed-income securities, and convertibles
- Strategic approaches to portfolio management such as bond indexation, inflation protection, hedging, and securitization
- Innovations in fixed-income securities instruments
What you’ll learn Rigorously but accessibly, Profiting from Fixed Income Securities covers what sophisticated investors need to know about:
- Bond valuation, yield calculation, bond price volatility, high-yield bonds, municipal bonds, and flip-flop notes
- Interest-rate futures, options, swaps, and forward-rate agreements
- Asset-backed fixed-income securities, mortgage-backed securities, ETFs on fixed-income securities, and convertibles
- Strategic approaches to portfolio management such as bond indexation, inflation protection, hedging, and securitization
- Innovations in fixed-income securities instrument
Who this book is for
- Financial professionals involved in institutional fixed income investing
- Bond investors and specialists (including portfolio managers, financial engineers, analysts, quants, and others) working within the fixed income arena
- Graduate-level students of finance
