Wednesday, March 11, 2015
Petitt et al., Fixed Income Analysis, 3d ed.
The book is divided into six parts: fixed-income essentials, analysis of risk, asset-backed securities, valuation, term structure analysis, and fixed-income portfolio management. The individual chapters are written by both practitioners and academics.
Although this book is aimed at those who either are or want to become fixed-income professionals, I would highly recommend it to serious equity investors as well. Equity investors rarely know as much as they should about fixed-income assets. Their knowledge usually comes to an abrupt halt somewhere in the neighborhood of the yield curve. They cede the fixed-income turf to the “smarter” guys. But, as this book shows, even those with only a modicum of math skills can understand the principles of fixed-income investing. It’s high time for serious equity investors to expand their horizons and perhaps, in the process, better understand their own domain.