Customer Reviews

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

5 star:		(14)
4 star:		(2)
3 star:		(2)
2 star:		(1)
1 star:		(0)

 

 

This book can help you make money. How? It reviews the history of spreads between Treasuries and Municipals, between Treasuries and Junk bonds, and between Treasuries and other types of bonds/securities. By buying the appropriate security when the spread is abnormally large by a wide margin, which admittedly may only occur once every ten years or so, I believe one could make a ton of money. An example would be to buy junk bonds when the spread between junk and treasuries exceeds 1200 basis points. Another example would be to buy municipals if their yield surpasses the treasury benchmark. Patience will be required, though, since, as the author points out, it is tough to make a killing in the bond market all the time (i.e. the market is usually highly efficient).

The author also does a terrific job pointing out the different types of risk (reinvestment, inflation, currency, interest rates, credit, etc.) for all the different types of securities and duration of securities. She then tells you how to select a security appropriate for your needs given the risks. For example, if you don't want to worry about a rise in rates destroying the value of your bond, buy one that you can hold to maturity and collect at par. Better yet, buy one with a short duration.

In conclusion, any well rounded financier needs to know about bonds--even Warren Buffet--the famous "stock picker"--invests a ton in bonds. This book is a great start to earning this skill.

2000 has been the year to be in bonds. Bonds have provided much better returns than the stock market. This is the best book (out of four that I bought and read) on bonds that I have found. It is clear, easy to understand, and has everything you need to know to get started. The section on Treasury bond ladders is especially helpful.

This seemed to me the clearest and most comprehensive of the introductory bond books I've looked at, head and shoulders above the others. Thau has a vintage Ph.D. in French Literature and is careful and thorough w/o being pendantic--more auntly than professorial. The book was updated in 2000 and the very conservative portfolio advice at the end may resonate w/ more readers. There's a short section on internet investing, and a bit more math than at least one other reader suggests.

Am nearly finished reading the 2nd printing of this excellent tutorial. Although I have been an avid buyer & seller of fixed income products for many years, the author did a superb job of furthering my mid-level expertise especially in the area of municipal bonds. Her plain language explanations were most welcome as opposed to the plethora of financial techno-babble tomes that share the bookshelf. 5 Stars without reservation.

+ 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.

This is an accessible introduction to bonds by a financial professional whose first book - as unlikely as it may seem - was a study of Max Jacob, the French poet. The literary background of the author, Annette Thau, may account for her book's clear, easy-to-read style. Most authors who write about bonds tend to get lost in the complex mathematics and specialized jargon of the bond markets. Not Annette Thau. Whether you are an individual investor trying to balance your portfolio with bonds, or a student of finance looking for a more lucid explanation of the subject than you can find in your textbooks, we highly recommend this book to you.

Very thoroughly written using easy-to-understand layman's terms and minimal bond math.
Anybody who wants to learn bond terminology, some bond math, and the various types of debt securities and strategies should consider this book. I highly recommend it.

I highly recommend this book to anyone interested in bonds, or for those who wish to enter the financial services industry. I had a difficult time putting this book down; the content was amazing.

Bonds are an important asset class to own, regardles of the current interest rates or stock market performance. You will gain a lot of knowledge either for your own informational needs or professional use.

As of writing this the Dow Jones has dropped 117 points today. Investors need alternatives. Bonds can be just the answer Ms.Thau says.

She dissects every type of bond and gives you a step by step guide on how to acquire the and which ones would appropriate for you.

Her voice is very refreshing in a world gone stock crazy. She doesn't pull any punches. I found the appendix very helpful.

The only draw back I have is the fact she doesn't mention Bond Futures indepth. For 11 years I have traded futures and written three books on the subject. Bond Futures are definitely an alternative to some of the expensive bonds and junk bonds (corporate) she mentions.

Great book overall.

You should read this one even if you ultimately decide that bonds aren't for you. Investment curiosities like bonds and stock moving in opposite directions, how inflation is addressed in the bond market, how to purchase treasuries without a commission, what it may mean for the economy when long term bonds are returning a lower yield than short term securities, and the power of compound interest are just a few of the topics discussed in enough depth that you will probably enjoy a whole lot better understanding of the financial markets than ever before.