Learning About Bonds

[chops_a_must]

Recently they've been fascinating me.

Although I don't fully understand them. What makes them priced the way they are and which ones relate to what etc. etc.

So what is the the best book to learn about bonds and the bond market, not necessarily the trading of them?

Or should I just start with reading the work of Leibowitz?

 

[BentRod]

I found this article over at FF to be a good starter.

http://www.forexfactory.com/news.php?do=news&id=102506

 

[RobinHood]

Fabozzi

 

[chops_a_must]

I found this article over at FF to be a good starter.

http://www.forexfactory.com/news.php?do=news&id=102506

Yup, it was.

Fabozzi

I assume you meant, "The Handbook of Fixed Income Securities"? Rather than the other 7 works?

 

[MRC & Co]

Just borrowed someones net, so will be quick.

Personally, I find bonds as boring as watching paint dry, makes the Nikkei look like a bond on cocaine!

I've got a little info on bonds, will give it to you this wkend Chops.

Most trade either 2,5 or 10 year bonds, but here in Australia it's 3 and 10 years. Pretty much all bond traders look to spread the two of them when they regress from 'fair value', as they correlate so strongly. I guess you would have to understand the math behind them pretty well to be able to do this well, as tick values change .

 

[Reealjrd]

Bond is a debt instrument issued to the public against mortgage. Bond is issued to those who provide loan to companies or government. In it you are also eligible for interest but the interest is decided with the mutual consent. after the maturity of bond you would get all your principal amount.

 

[Bushman]

Pimco are the bond guys - here is a link to their 'everything you need to know about bonds' section:

http://www.pimco.com/LeftNav/Bond+Basics/2007/Everything+you+need+to+know+about+bonds.htm

Bond traders always tend to be the biggest bear in a room too.