Bonds in a Day

Stewart Cowley has been working in financial markets since 1987. He is one of a handful of people to have ever held a triple-A rating by Standard & Poor’s and was awarded the prestigious Gold Medal for long-term investment performance by FE Trustnet. He has also been one of the UK’s most visible fund managers, having written for the New Statesman, the Sunday Telegraph and Citywire. He has made frequent appearances on BBC TV and radio and Sky News. His previous books, Man vs Money and Man vs Big Data, have both been bestsellers.

As the title suggests, Bonds in Day is an introductory text to the world of bond mathematics. The author assumes no knowledge on the part of the reader and explains each new concept as it comes up in a simple and informative manner, often mixed in with a few humorous stories.... Any investor interested in improving their knowledge should purchase this book, a well written, step by step guide to this important market.

• Bond Basics- Compound interest- Discounting- Pricing a bond- ConventionsYield- Simple yield- Yield to maturityDuration- Concepts- Duration and pricingConvexity- Concepts- Calculating convexityTotal Return Management- Steps to calculating total returnHorizon Analysis- Computing total returns over an investment horizon- Scenario analysisYield Curves- Types of yield curve- Yield simulation and theoriesThe passage of time in bond management- Rolling down the yield curveUsing corporate bonds- Assessing the adequacy of corporate bond yields- Example of total return management using corporate bondsBring it all together- Multi-variable total return analysis