Contents
Foreword by Mohamed El-Erian ix
╇ 1.╇The Importance of the Bond Market 1
╇ 2.╇The Composition and Characteristics of the Bond Market 27
╇ 3.╇Bond Basics: Building Blocks and Warning Labels 63
╇ 4.╇Types of Bonds 81
╇ 5.╇Risks Facing Today’s Bond Investors: Asset Diversification
Does Not Equal Risk Diversification 111
╇ 6.╇Don’t Fight the Fed: The Powerful Role of the
Federal Reserve 139
╇ 7.╇The Yield Curve: The Bond Market’s Crystal Ball 175
╇ 8.╇Real Yields: Where Real Messages Can Be Found 197
╇ 9.╇The Five Tenets of Successful Interest Rate Forecasting 215
10.╇From Tulips to Treasuries: Tracking Market Sentiment
to Forecast Market Behavior 251
11.╇Using the Futures Market to Gather Market Intelligence 275
12.╇Credit Ratings: An Essential Tool for Bond Investors 293
13.╇Bond Strategies 313
14.╇How Interest Rates Have Shaped the Political Landscape 323
15.╇Utilizing Economic Data to Improve Your Investment
Performance 341
Appendix. Handbook of Economic Data: Power
Tools for Investors 351
Endnotes 401
Index 403