5 comments about Bond Markets, Analysis, and Strategies (7th Edition).

1. Some sections of the book were underlined throughout the page. If everything is underlined, nothing is important.



2. I agree with Veritas in that this text and its accompanying solution manual are plagued by errors.
   
   The text, in its examples, has errors throughout the text which makes learning this material extremely difficult.
   
   For example, on page 65, Exhibit 4-5, the answers given read as "Macaulay duration (half years)", "Macaulay duration (in years)" and "Macaulay duration". The last "Macaulay duration" should read Modified duration. On page 68, an equation reads "210.62(+0.02) = - 0.2124 = -21.24%". Do the math here folks! This should read, "-10.62(+0.02) = -0.2124 = -21.24%.
   
   Every chapter that I have read has errors. I am currently working on Chapter 18 and the examples given calculate the forward rates incorrectly. Page 425 has a 3-year forward rate of 5.58%, It should be 5.611.
   
   I guess someone could say, "You're being anal here. What's the difference between 5.58% and 5.611%?"
   
   The Author, publisher and editor should be ashamed of themselves.
   
   Keep in mind folks, this is a SEVENTH EDITION!
   
   I couldn't find any errata available on the publishers site either.
   
   I realized students don't have any say in what text is assigned in class, so you're stuck if this is the case.
   At least, I've warned students that there are more mistakes in this text than a speech by Vice President Joe Biden.



3. The seller was in touch with me throughout the entire process but I didn't receive a student edition of the book like I thought I bought instead I received a professional edition which wasn't written on the description of the book. However they did refund me some money for this mix up.



4. 
   
   Excellent treatment of all the major concepts -- good if you are studying for the CFA exam, as well...we used this in a top 20 MBA program and I highly recommend this book...fixed income is not easy stuff, but this book explains concepts/problems in a easy to digest way....



5. This book has numerous issues with incomplete formulas, math errors, and poor editing. Many of the questions at the end of the chapters are incomplete and the solutions in the manual often add in information that was not in the question. The solutions manual has lots of numbers transposed and on multipart questions these errors cause all of the answers to be incorrect. In addition, many of the solutions will change par value in the middle of the answer making it very confusing.
   
   The editor of this book should be fired immediately.

5 comments about The Predators' Ball: The Inside Story of Drexel Burnham and the Rise of the Junk Bond Raiders.

1. The author did an immense amount of work and packed it into a piece that reads fairly well for such a topical historical account. This is one of the more important stories to understand in light of today's issues. The rise of the Junk Bond raiders isn't just the rise of the Junk Bond era, it is the rise of how this type of debt made it to market and took off. It is a story that explains what- despite all of the news in the press against sub-prime - the purpose of this type of debt is (outside of lining the pockets of deal makers).
   
   I give the book huge kudos for its account and agree that it should be on the reading list for all those trying to understand the market dynamic.



2. It was a very difficult slog trying to get though this hacked up piece of writing. While the subject matter is of immense historical importance on a memorable era of Wall St, they could not have chosen a worse author. Bruck has done a commendable job gathering all the information and sources and I couldn't argue her expertise on this subject. But that does not translate into a good story.
   From one paragraph to the next it is impossible to discern which character plays an important role as virtually every name is explicitely introduced no matter how minor their role or statement.
   I can see that any editor would not even try to change the work, and probably threw their hands up in the air in surrender. The whole work would have to be scrapped and written from scratch to become a gripping story, the likes of "When Genius Failed".
   The book reads like a completely disjointed collection of factoids, not a smooth flowing story, slowly revealed. You never know where you are in the timeframe of events as the author jumps around.
   
   A surprising number of the sentences are nothing but pure hackney:
   Take this example of two "had hads" in one sentence:
   "Drexel investment banker James Schneider, in the firms San Francisco office had had workouts on his mind through most of 1981, since ACI was his deal and he had had the responsibility for trying to salvage it."
   
   Is that the best way you could explain it? Probably greater than half of all the sentences are awkward like this. This book easily wins the all-time record for excessive "had hads"; They show up page after page.
   
   In addition as others have mentioned, certain concepts or securities are not well explained and unless you are already a true expert you may not recognize or understand them.
   
   A great subject, great research, done by a very poor writer, making it a miserable read.



3. In this book, Connie Bruck describes the rise and fall of Michael Milken, a man who singlehandedly built the junk bond empire of the 80's. Junk bonds are bonds with a low credit rating (below investment grade), issued by firms at very high interest rates to compensate the investor for the higher chance of default. In mid and late 80's, these bonds were used heavily to finance large corporate takeovers, completely changing the landscape on Wall Street.
   
   The book is split into three major parts: Spreading the Gospel, Pawns Capture Kings, and The Zenith and the Fall. The first part describes Milken's background and how he became involved in the junk bond business. While at UC Berkeley, Milken came across a study by W. Braddock Hickman, which found that a low-grade bond portfolio, if very large, well diversified, and held over a long period of time, was a higher-yielding investment than a high-grade portfolio. Milken became fascinated by this idea and started his career as a bond trader at Drexel in the early 70's, while finishing his business degree at Wharton. The rest is history: throughout the next twenty years, Milken essentially took over Drexel and had unlimited reign over not only the firm, but essentially all of Wall Street (ironically, from his Beverly Hills office in California).
   
   In the second portion of the book, Bruck describes how Milken created and supported the corporate raider culture. Bruck presents three case studies. The first is about Nelson Peltz and Peter May, who took over National Can. Peltz is arguably Milken's most amazing transformation - he created a corporate raider out of nobody. The second case, the most interesting one, is about Carl Icahn and his acquisition of TWA. Icahn went from quick profits through greenmail (threatening to buy a company - and then being bought out at a premium) to actually buying companies. With TWA, he used incredible negotiating tactits and made deals with unions behind management's back, which ultimately let him take over the firm. Icahn was very independent from Milken, unlike most of Milken's corporate raider ¨pawns.¨ The third case is about Ron Perelman and his epic battle for the prestigious Revlon.
   
   The last part of the book dwells on just how powerful Milken and Drexel had become. The junk bond market had grown over one decade from $15B to $125B at the end of 1986. Since the 80's saw very low default rates and a tremendous bull market, Milken's empire worked very well - there was nothing to challenge it. Milken perpetuated his machine by overfunding each deal, giving raiders extra cash that they would then have to invest back into junk bonds (so as to cover the carrying cost of the debt) - in this way, Milken made sure there was always a growing market for his junk bonds.
   
   If you were not one of Milken's clients (and sometimes, even if you were), you trembled in fear, waiting for a corporate raider to emerge with a 13D filing, stating that he owns more than 5% of your company's stock. In some cases, Milken directly threatened companies, forcing them to do business with Drexel (as in the case of Wickes). Even legislation failed to stop corporate raiders. While the Fed created some rules restricting the use of debt in hostile takeovers, they were easily bypassed through shell companies and preferred stock (which generally acts as debt).
   
   Bruck did an excellent job with this book. It is very thorough and interesting to read. It is amazing to see all the details of these various deals and take-overs. While it is clear that Bruck looks down on Milken's actions, she tries to stay objective - and makes comments like ¨this reporter views this practice as extortion.¨ In the Afterword, she furthermore makes a case for some of the positive things that Milken has achieved, such as providing funding to companies that couldn't get it elsewhere, and creating stronger leaner firms.
   
   My biggest gripe with the book is that it feels very unfinished. Bruck barely mentions the RJR Nabisco deal, in which Drexel was a big player. She also doesn't describe what happened to Milken after charges were brought against him by the SEC (including his jail time, etc.). She doesn't talk about Drexel's collapse, and she claims that the effects of Milken's machine will only be seen many years from now, when some of the long-term junk-fueled debt comes due. I understand that the book was written and published immediately after Milken's fall. However, it has been almost twenty years since that, and a new edition would surely add a lot to the story.
   
   In conclusion, I really enjoyed the book. It is a great read for anyone interested in Wall Street history of the 80's. While it may feel unfinished, it provides amazing detail on the rise of Michael Milken and his corporate raiders.
   
   Pros:
   + tremendous amount of detail, from characters to numbers
   + great use and definition of finance terminology
   + exciting story, filled with funny anecdotes and breathtaking accounts of corporate battles
   + covers not only Milken, but several other characters, including the major corporate raiders
   
   Cons:
   - feels unfinished: could really use another edition with further history on Milken and Drexel



4. The Savings & Loan scheme was a creation of Michael Milken and his firm Drexel Burnham. They realized they could sell high risk securities to S&Ls while assuring the S&Ls (correctly) that being FDIC insured they could not lose.
   
   The ultimate cost to the taxpayers (which is to say the Middle Class) was some $150 billion.
   
   Charlie Keating as noted in the "Predator's Ball", when Keating tried, repeatedy, to contact Milken to be part of his group, Milken's secretary would just say: "You are not a Jew" and hang up on him.
   
   This is a very honest book about life and how ethnicity on WALL STREET matters!



5. This author presents a thorough and conclusive account of Mike Milken. The level of depth she was able to provide here is really impressive.

5 comments about The Fundamentals of Municipal Bonds, 5th Edition.

1. Not a bad book. Served the purpose of the class. I still have the book for reference.



2. This book gives an excellent overview of muni bonds. It covers the terminology associated with these bonds.
   However it contains limited math analysis.
   Excellent, excellent reference book.



3. After a few years in waiting, I am glad to see that the Bond Market Association has released the 5th addition of The Fundamentals of Municiple Bonds. The author of this book did a great job capturing the signifigance of the municiple bond, and exaplining it clearly with graphs and charts. I highly recomend this book and give it a 5 star rating.



4. This book was amazing. Not only was it a great read (I couldn't put it down) but I learned more about derivatives and muni bonds in this book than i could have in any classroom or read in any other book on bonds.



5. This book was amazing. Not only was it a great read (I couldn't put it down) but it was also very informative. I learned more about derivatives in this book than I could have in any classroom or any other book on bonds.

5 comments about Bonds Now!: Making Money in the New Fixed Income Landscape.

1. I write this negative review because I've benefited enormously from the insights of other reviewers on amazon, positive and negative; my honest opinion is i can't see how this book deserves its current rating of 4.5 stars.
   
   For me this book was an absolute waste of money. I was looking for a guide to bond investing or at least some practical information on it. W/ a ostentatious title such as "making money: in the new fixed income landscape", this book seems to confidently advertise itself as such.
   
   Instead I found generic advice I'd find from any broker or generic free online website. To make it even worse, large sections of the book were written as a political diatribe -- I don't pay for people's cheap opinions; I pay for information. And the less likely I'm able to find this information elsewhere, the more I pay for it.
   
   I would not pay much for this book.
   
   **caveat - adding 1 star for author's emphasis of TRACE"



2. If you're buying Munis or thinking about it, get this book. Excellent for beginning and seasoned investors.



3. Saw this author on Squawkbox the other day. She seemed intelligent, well-versed in her subject and able to speak clearly and concisely. I don't have an MBA so plain English, or at least language that is understandable by an average person, is greatly appreciated. So glad I picked the book up and ignored the nonsense spouted by an earlier so-called reviewer, who seemed far more intent on reviewing the reviews than the material.



4. This bond book is the 2nd one I've purchased recently. It has some examples of how things went wrong in the crash of 2008 and how to invest wisely to minimize the chances of losses in the bond market should another crash occur. I recommend it for that reason. However, like many stock books that talk exclusively about their own subject, this book is very focused on bonds. It seems like we could use a book that talks more about combining stocks with bonds investment strategies and provide guidance on blending the two to create a safe and reasonably secure retirement portfolio that includes the benefits of stock and bond diversification.
   
   Also, bond books, in general, do not really discuss the time scale of interest changes, and this book doesn't exactly cover this topic that well either. The time scale goes back ~80 years to a time just after the great depression when interest rates were as low as they are today. This book doesn't really talk about optimal strategies on managing money in the face of such low short term interest rates as we faced then and are facing today. I still strongly recommend the book purely for it's coverage on how to choose bonds that are fully liquid and why that is important as well has how to diversify the bonds and why that is important.
   
   I strongly recommend the book.



5. I was interested in this book until I read the "reviews". Let's see, an obscure bond book is published on December 9 and within a few days six "reviewers", none of whom have ever previously posted a review on Amazon post syrupy ravingly positive but highly generalized "reviews" that sound like advertising copy written by the publisher. I smell (six) ringers here and if the publisher needs to resort to this kind of phony behavior I bet the book's a dud so I'll pass on it.

5 comments about Interest Rate Swaps and Their Derivatives: A Practitioner's Guide (Wiley Finance).

1. This is finally a good, clear, concise and accurate book.
   It is very hard to find a book on interest rates derivatives and this is finally the one. It is very up-to-date and contains a lot of information and improvements that were the results of the recent financial crisis.



2. The book is excellent with good balance of math and conceptual common sense. The book shows me the framework for instrument pricing via replication. With it, I can theoretically price any derivatives in the world which is quite powerful idea. A great book for people who want to learn pricing wide ranges of derivative products.



3. Comparing with other books on swap subject, this book offer a good balance between clearness of the concepts and just enough technical details to handle the real world problem. Reading this books is like attending a seminar taught by senior quantitative trader, it really filled the gaps in my knowledge.



4. There are loads of books on the theory behind derivatives pricing - this book is unique in that it identifies and clearly explains the important practical aspects of these markets, including the jargon and conventions. Even after 20 years in the industry, this book completed many gaps in my knowledge base. It fills an important gap between the Handbook of Fixed Income Securities and Options, Futures and Other Derivatives.



5. The book fills a great niche in between very simple overviews and the very mathematical oriented work. If you need to know things like day counts for different indices, CMS convexity adjustments and a general overview over the different measures used to price derivatives, the different interest rate models etc. this is the book to own.

5 comments about The Treasury Bond Basis: An in-Depth Analysis for Hedgers, Speculators, and Arbitrageurs (McGraw-Hill Library of Investment and Finance).

1. I am a computer programmer who was working for a Secondary Market division in a bank and I was looking a reference of how to do hedging operations buying cash bonds and selling futures in short; also in my new role as programmer for a reconciliation team I wanted to learn how to calculate the P&L of fix income operations. Few books contains the level of details that I was looking for, this book is one of them good starting point, it explains realistic models and trents used for finance people to do capital markets.



2. Great book - I studied with Galen and he is a great guy and the world expert on cash-futures basis. Well worth the price and a place in your library!



3. After reading the Doctors masterpiece three times, i had enough of his theta gamma explanations. I am an avid reader who greatly enjoyed the Doctor's complicated explanations. I totally agree with Elvis. Great work again doctor



4. After reading the Doctors masterpiece three times, i had enough of his theta gamma explanations. I am an avid reader who greatly enjoyed the Doctor's complicated explanations. I totally agree with Elvis. Great work again doctor



5. I've been working in Futures & Options research for 3 years now, and this has proven to be the best refernce guide available. Terrence elucidates the concepts and mechanisms underlying the treasury bond basis with eloquence and intellect. His other work, Eurodollar Futures and Options, is also a great reference for the shorter end of the curve.

3 comments about The Handbook of Municipal Bonds (Frank J. Fabozzi Series).

1. As a financial advisor with UBS in Palo Alto, California I do a lot of municipal bond business. I have found this work to be very insightful and contains lots of detail.
   Neil Gavande



2. This is the book we can only hope that that every bond rating agency has on its shelf and that everyone in the municipal bond supply chain has on their desk top. Like the previous reviewer said "there is nothing else like this" on the market. In an age of uncertainty you had better do your diligence where it concerns municipal bonds and learn an appreciation for the subtle but important distinctions. This is the most relevant book for our times in the brilliant Fabozzi series.



3. This is a comprehensive book on bond insurance and hits all the hot topics for the municipal bond investor. Well worth the price. There is no other book like this.

1 comments about Bonds and Bond Derivatives.

1. This book gives a very good review for beginners investing in the US bond market only. If you are a professional it is more a dictionnary, it doesn't analyse properly instruments. I would like to finally see an author able to understand that a bond is a bond, and a book like that should focus on this and not to give us a extensive listing of all US bonds in the market ....Second USA are not anymore the only financial market in the world : so "International" chapter should be at least as important as the rest of the exercise...

5 comments about Mortgage-Backed Securities: Products, Structuring, and Analytical Techniques (Frank J. Fabozzi Series).

1. The guy next to our office was working with AFT/Intex and doing some ABS/MBS modeling. He did some presentation on the subject, but I didn't understood a word he spoke. However, the product looked interesting. So I decided to check it out in this book.
   
   I have to say it is presented very nicely. I only read about 3/4th of the book. I have not used the knowledge for anything yet. So I cannot say how much it has helped me. But the topic is clear and well presented.



2. Compared to other books and especially handbook of mbs this book has very uniform treatment you don't feel like it is a collection of articles written by different people. The subject is discussed with detail and flow which will allow a person to put it in practice. Have not read the book from cover to cover yet but whatever random parts I read I got answers to questions I had been having for quite sometime.



3. A well-written, easy-to-follow book that serves as a fantastic addition to any fixed income or real estate curriculum. Those already in or looking to enter the mortgage securitization business should have the information contained in this book as part of their arsenal.



4. I think this book is the new gold standard for MBS. Unlike previous MBS books I have read, this one flows well from chapter to chapter and can actually walk someone new to the field through collateral, structuring and valuation in a logical manner. Excellent job!



5. The book provides a very complete overview the residential mortgage-backed securities market and is written by two gentlemen that were arguably at "the center of the storm" at Countrywide Securities.
   
   The book is structured nicely taking the reader from a general overview of the MBS market to a detailed look of the process of securitization through to investing in the end securities.
   
   The chapters dedicated to the structuring and credit enhancement techniques of residential ABS deals a particularly useful to people just entering the current market. The unique perspectives on measuring loan performance and influences on collateral prepayments are also very useful reading.
   
   All in all a must read for those beginning in the industry and a great reference for those of us that might have forgotten a few things.

5 comments about The Bond Book: Everything Investors Need to Know About Treasuries, Municipals, GNMAs, Corporates, Zeros, Bond Funds, Money Market Funds, and More.

1. The author was a bond analyst for Chase Manhanttan Bank has a Ph.D and has taught in Columbia University MBA program, so she is very knowledgeable. She is also an excellent writer, meaning no ambiguity, no struggling for comprehension. She writes concisely and makes understanding the material as easy as possible. That said, the book is not an easy read. This is not a book you will read in a week and understand everything in the book. The first part of the book lays the foundation for the 2nd half - covering bond math, yields, reading the financial pages, talking to a broker. One plus, the book (every chapter) highlights the dangers of investing in bonds (generically) and most types of bonds and bond mutual funds. One example, for a bond mutual fund, if the SEC yield differs from the distribution yield by more than 20 basis points, a red flag should go up. The fund could be stacked with premium bonds ie. high coupons but capital losses when the premium bonds are redeemed at par. Chapters on specific bonds (corporate...) have a summary of questions that you should ask yourself or ask your broker before deciding to purchase the bond. Her advice and cautions are timeless - they apply to the bond market in 2010. Following her advice, should prevent an investor from making a poor investment in bonds. Lastly, the author is finishing an updated version of this book (2010?) so I would probably wait and purchase that book.



2. This book is fantastic!
   
   After reading general websites and academic topics on the matter, I was actually looking for a book that would not just focus on the math and tackle real life bond trading. This book will teach you how bonds really work, what drives their prices and what to look for when speculating or investing on them.
   
   Overall great read.
   
   Thanks to the Author for providing us with such a precious gem.



3. It is exceptional good book for bond. I recommend it for any body who will be interested on bond.



4. + A good introduction to understanding the bond market and how to invest in it. Clear, succinct and more readable than some more technical books on the subject. However, The Bond Book is a bit dated, the second and latest edition is from 2000, it's in need of an update. Overall this is a good first choice as a primer if you're not too concerned about the latest developments in bond derivatives.



5. A great introduction to bonds and there place in a portfolio. The perfect place for the individual to start if they are considering purchasing individual bonds for their portfolio.
   
   However, anyone looking for more in-depth information and strategies will likely be disappointed. Relatively little information about Zeros, TIPS and other products that are likely to be of interest. Start here, and then increase your knowledge with a title specific to your interests (i.e. municipal bonds, etc.).