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The Handbook of Fixed Income Securities
An updated and revised edition of an authoritative resource providing current information on fixed income securities. The volume's 62 chapters, each written by an authority on the subject, are divided into seven general information about the investment features of fixed income securities and associated risks; domestic and foreign bonds and money market instruments; credit analysis of these instruments; mortgage- backed securities; methodologies for valuing fixed income securities; popular fixed income portfolio management strategies; and derivative instruments and their portfolio management applications. Annotation c. by Book News, Inc., Portland, Or.
1339 pages, Hardcover
First published April 1, 1983
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About the author
Frank J. Fabozzi
378 books119 followersFrank J. Fabozzi is a Professor in the Practice of Finance and Becton Fellow in the Yale School of Management. He is well known as the author of numerous books on finance, both practitioner-focused and academic. Professor Frank J. Fabozzi will be joining Edhec Risk Institute on August 1, 2011. EDHEC-Risk Institute is part of EDHEC Business School, one of Europe’s leading business schools.
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Displaying 1 - 11 of 11 reviews
January 18, 2009
Referred to as "The Bible" for a reason.
Actually read it cover to cover when I was an intern at a big bank. My amazed bosses said it was meant to be a reference book and not to read straight through cover to cover... but that's what this nerd did!
Actually read it cover to cover when I was an intern at a big bank. My amazed bosses said it was meant to be a reference book and not to read straight through cover to cover... but that's what this nerd did!
April 30, 2015
Excellent coverage of almost all common fixed income instruments. The chapters are logically organized and contain a good mix of theoretical and practical knowledge. Although it might have been useful to include more mathematics. I actually have the 8th edition of this book.
July 1, 2012
This is not a book for casual reading. It is a solidly written text that explains the key elements of various fixed income securities. I like to use it as a reference for my research when I am trying to get a refresher on the basics of fixed income products.
June 21, 2025
DOUBLE BARREL BONDS!!! Additionally, certain general obligation bonds are secured not only by the
issuer’s general taxing powers to create monies accumulated in the general fund,
but also from certain identified fees, grants, and special charges, which provide
additional revenues from outside the general fund. Such bonds are known as
being double barreled in security because of the dual nature of the revenue
sources.
TIPS: The only “cost” to Government is that, by issuing inflation-adjusted bonds, it fore
goes the opportunity of reducing, through inflation, the real cost of borrowing . . .
Since [the New Zealand] Government has no intention of stealing the money
invested by bondholders, foregoing the right to steal through inflation hardly seems
a significant penalty. TIPS reduce the expected cost of financing a govern
ment’s debt because they are conceptually free of the inflation risk premium built
into nominal long-term bond yields. Normally one might conclude that by reliev
ing bond investors of this risk, the Treasury implicitly absorbs a burden or risk
equal in magnitude. This is not the case here, however.
By reducing nominal debt and increasing inflation-indexed (real) debt, the
Treasury has in effect changed the structure of its liabilities to better match its
only asset—its authority to tax. Put another way, the Treasury is the ideal issuer
of inflation-indexed debt. The issuance of TIPS improves taxpayer welfare by eliminating the 0.5%
to 1.0% inflation risk premium that researchers believe is embedded in nominal
bond yields
Endowments, foundations, and other eleemosynary organizations also
may have return objectives that are formulated in real terms. Typically their
goal is to generate a 5% or higher real return on their investment portfolio. (The
IRS generally requires that 5% of a charitable foundation’s assets be spent on
the delivery of charitable services each year—so a 5% real return, net of
expenses and contributions, is required to maintain the foundation’s inflation
adjusted size.) Establishing a real-return target for investment performance makes sense
for these organizations. Educational or charitable programs, whether they involve
physical infrastructure or services, often are budgeted for using inflation-adjusted
dollars. Implicitly, such goals, objectives, and plans represent real liabilities.
issuer’s general taxing powers to create monies accumulated in the general fund,
but also from certain identified fees, grants, and special charges, which provide
additional revenues from outside the general fund. Such bonds are known as
being double barreled in security because of the dual nature of the revenue
sources.
TIPS: The only “cost” to Government is that, by issuing inflation-adjusted bonds, it fore
goes the opportunity of reducing, through inflation, the real cost of borrowing . . .
Since [the New Zealand] Government has no intention of stealing the money
invested by bondholders, foregoing the right to steal through inflation hardly seems
a significant penalty. TIPS reduce the expected cost of financing a govern
ment’s debt because they are conceptually free of the inflation risk premium built
into nominal long-term bond yields. Normally one might conclude that by reliev
ing bond investors of this risk, the Treasury implicitly absorbs a burden or risk
equal in magnitude. This is not the case here, however.
By reducing nominal debt and increasing inflation-indexed (real) debt, the
Treasury has in effect changed the structure of its liabilities to better match its
only asset—its authority to tax. Put another way, the Treasury is the ideal issuer
of inflation-indexed debt. The issuance of TIPS improves taxpayer welfare by eliminating the 0.5%
to 1.0% inflation risk premium that researchers believe is embedded in nominal
bond yields
Endowments, foundations, and other eleemosynary organizations also
may have return objectives that are formulated in real terms. Typically their
goal is to generate a 5% or higher real return on their investment portfolio. (The
IRS generally requires that 5% of a charitable foundation’s assets be spent on
the delivery of charitable services each year—so a 5% real return, net of
expenses and contributions, is required to maintain the foundation’s inflation
adjusted size.) Establishing a real-return target for investment performance makes sense
for these organizations. Educational or charitable programs, whether they involve
physical infrastructure or services, often are budgeted for using inflation-adjusted
dollars. Implicitly, such goals, objectives, and plans represent real liabilities.
January 10, 2020
This book is 1000+ pages long. Its sheer size has detered me from reading it even though I got the book months ago. However, as soon as I started reading the first page, it's a breeze. Still long. I do intend to keep on reading it as a referenced book.
April 17, 2020
This was my bible as a fixed income trader for Morgan Stanley in London. Concise and a great reference.
June 13, 2020
The Bible!!!
December 10, 2024
Kind of dry not going to lie
September 18, 2007
Don't ask...
Currently reading
March 13, 2009A comprehensive resource for those in the financial field.
March 28, 2013
The Fixed Income Bible
Displaying 1 - 11 of 11 reviews