Debt Markets and Analysis, + Website

An accessible guide to the essential elements of debt markets and their analysis Debt Markets and Analysis provides professionals and finance students alike with an exposition on debt that will take them from the basic concepts, strategies, and fundamentals to a more detailed understanding of advanced approaches and models. Strong visual attributes include consistent elements that function as additional learning aids, such as: Key Points, Definitions, Step-by-Step, Do It Yourself, and Bloomberg functionality Offers a solid foundation in understanding the complexities and subtleties involved in the evaluation, selection, and management of debt Provides insights on taking the ideas covered and applying them to real-world investment decisions Engaging and informative, Debt Markets and Analysis provides practical guidance to excelling at this difficult endeavor.

Preface ix Acknowledgments xiii Part I: Bond Evaluation and Selection Chapter 1 Overview of the Financial System 3 Chapter 2 Overview and Guide to the Bloomberg System 29 Chapter 3 Bond Value and Return 85 Chapter 4 The Level and Structure of Interest Rates 135 Chapter 5 Bond Risk 179 Chapter 6 Bond Investment Strategies 225 Part II: Debt Markets and Securities Chapter 7 Corporate Debt Securities 267 Chapter 8 Government Securities and Markets: Treasury, Agencies, Municipals, and Sovereign Debt Securities 319 Chapter 9 Intermediary Debt Securities, Investment Funds, and Markets 369 Chapter 10 Mortgage-Backed and Asset-Backed Securities and Securitization 413 Part III: Debt Derivatives Chapter 11 Bond and Interest Rate Futures Contracts 479 Chapter 12 Bond and Interest Rate Option Contracts 517 Chapter 13 The Valuation of Bonds with Embedded Options and Debt Options—The Binomial Interest Rate Tree 565 Chapter 14 Interest Rate and Credit Default Swaps 613 Supplemental Appendices Appendix A: Primer on Return, Present Value, and Future Value 667 Appendix B: Uses of Exponents and Logarithms 679 Appendix C: Directory Listing of Bloomberg Screens by Menu and Function 685 Index 697