Income Builder - Recommended Reading for Fixed Income Investors |
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Back to Index Recommended Reading: (Required reading for those new to fixed income investing) These books offer good background information and many useful tips for following the bond markets and investing in fixed income securities. The Strategic Bond Investor by Anthony Crescenzi, McGraw-Hill, 2002. This book provides an excellent overview of various bond market sectors and their importance. It gives clear and easily understandable descriptions of key concepts, such as the yield curve and real interest rates. It gives you many of the tools that you need to make strategic decisions about determining fixed income sector weightings in your portfolio. It does not, however, offer all that much help in determining how to analyze and select individual bonds. The book is very well written. Although it is often repetitive, that repetition can be useful in driving home key points for those who are new to fixed income investing. The book needs to be updated, but most of the concepts that it covers are still relevant today. Bonds: The Unbeaten Path to Secure Investment Growth by Hildy Richelson and Stan Richelson, Bloomberg Press, 2007 (2nd edition) Although I disagree with the authors’ suggestion that you can’t lose any money by investing in high quality bonds, I believe strongly in their assertion that an all-bond portfolio can provide attractive returns at much lower risk than a stock-based strategy. It therefore makes great sense for many investors to pursue such a strategy, especially in these uncertain times. The book’s primary strength, in my view, is its description of the bond buying process, tax considerations and its advice on working with brokers. It gives useful tips for investors considering bond mutual funds. It also offers practical suggestions on how to structure a bond portfolio. But like Mr. Crescenzi’s book, it does not provide a lot of information about how to analyze and select individual bonds. Back to Index _________________________________________________________________________________ Originally published February 28, 2008 Stephen P. Percoco © 2008 Lark Research, Inc. All Rights Reserved. Information is carefully compiled but not guaranteed to be free from error. Specific reference to any specific security should never be construed as a solicitation to either buy or sell. Reproduction without permission from the publisher is prohibited. |
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