BOND MARKETS, ANALYSIS, AND STRATEGIES

FRANK J. FABOZZI, CFA, Professor of Finance
EDHEC Business School   

Preface

The first edition  of Bond Markets, Analysis, and Strategies  was published in 1989. The objective was to provide coverage of the products, analytical techniques for valuing bonds and quantifying their exposure to changes in interest rates, and portfolio strategies for achieving a client’s objectives. In the six editions subsequently published and in the current edition, the coverage of each of these areas has been updated. In the product area, the updating has been primarily for the latest developments in nonagency residential mortgage–backed securities, asset-backed securities, bank loans, and credit derivatives (more specifically credit default swaps). The updating of the coverage on bond portfolio management has been for factor models for constructing bond portfolios and controlling a portfolio’s interest rate risk.
Each edition has benefited from the feedback of readers and instructors using the book at universities and training programs. Many discussions with portfolio managers and analysts, as well as my experiences serving on the board of directors of several funds and consulting assignments, have been invaluable in improving the content of the book.
I am confident that the eighth edition continues the tradition of providing up-to-date information about the bond market and the tools for managing bond portfolios.
NEW TO THIS EDITION
With the exception of  Chapter  1  , all chapters now end with key points rather than a summary. The key points are in the form of bullet points, which should make it is easier for students to review the major points made in the chapter.
The chapter “Collateralized Debt Obligations (CDOs)” was deleted in this edition. Given that there has not been any issuance of this product with the exception of collateralized loan obligations, and highly unlikely there will be future issuance, coverage was deleted.Collateralized loan obligations are covered in  Chapter  7.