Fixed income securities markets are central to the modern economy. It is humongous and the most influential market in the entire financial system. In addition to that, the global fixed income securities market is becoming highly competitive and increasingly complex. This necessitates having a comprehensive, inclusive, well-structured, and up-to-date text available for fixed income analyses. This book is specially designed for students and professionals interested in understanding fixed income securities and fixed income markets. It provides a comprehensive blend of theoretical as well as practical aspects of fixed income investments.
- Simplifies the complex fixed income concepts through a user-friendly coherent format
- Complex topics are illustrated and explained concisely and easy-to-understand with real-world data using Excel and a financial calculator
- Enhances the knowledge and skills required to manage the fixed-income portfolio
- Provides why, when, and how to use derivatives instruments to shift the risk associated with investing in fixed income securities
- Numerical problems and case studies at the end of each chapter provide practice on concepts explained and application to real-world situations
- Rich pedagogical features, such as
- LOs and introductory Stimulus
- Side-textboxes and Takeaways
- Numerous tables and figures
- Chapter-end exercises and mini-cases
- Includes a licence key for our digital learning app, Cengage Digital App, that provides access to flashcards, self-assessments, and Solutions Manual, including worked-out examples in MS Excel
Preface
Features of the Book
List of abbreviations
PART I BOND STRUCTURE, PRICING, AND INVESTING
1. Debt Securities Market —An Overview
2. Debt Market Instruments
3. How Are Bonds Issued?
4. How Are Bonds Traded?
5. Worth of a Bond! —Essentials of Bond Valuation
6. Worth of a Bond! —The classical Approach
7. Measuring Yield and Return
PART II BOND MARKET ANALYTICS: ESSENTIALS
8. Tenets of Successful Interest Rate Forecasting
9. Yield Curve and Term Structure
10. Measuring and Managing Interest Rate Risk
11. Measuring and Managing Credit Risk
PART III BOND MARKET ANALYTICS: ADVANCED
12. Arbitrage-free Valuation Framework
13. Valuation of Bonds with Embedded Options
PART IV SOME DEBT SECURITIES SEGMENTS
14. Securitisation and Mortgage-backed Securities
15. Inflation-linked Bonds
PART V INVESTMENT STRATEGIES
16. Overview of Fixed Income Portfolio Management
17. Liability-driven Strategies
18. Yield Curve Strategies
19. Bond Performance Measurement and Evaluation
PART VI RISK MANAGEMENT USING DERIVATIVES
20. An Overview of Derivatives
21. Interest Rate Forwards
22. Interest Rate Futures
23. Interest Rate Options
24. Interest Rate Swaps
M. Kannadhasan
M. Kannadhasan is Professor of Finance at the Indian Institute of Management, Raipur, where he teaches Fixed Income Securities to the students of the MBA programme. He received his bachelor’s degree in commerce from Madras University; MBA from Bharathiar University; Master’s in Foreign Trade from Pondicherry University; and PhD in Finance from Anna University. Previously, he was Assistant Professor at Bharathidhasan Institute of Management, Trichy.
Prof. Kannadhasan’s research work has appeared in numerous journals of repute, including the International Review of Economics and Finance, Journal of Behavioural and Experimental Finance, Emerging Markets Review, Finance Research Letters, International Journal of Managerial Finance, Applied Economics Letters, and The North American Journal of Economics and Finance. He has also published cases with Ivey Publishing, Canada, and is listed in Harvard Business Publishing Education. He has also authored a book and three monographs.
Dr Kannadhasan attended the 'Global Colloquium on Participant Centered Learning’ and 'Case Writing Workshop’ held at Harvard Business School in 2012 and 2014, respectively. He is the recipient of ‘Best Professor in Financial Management’ at the 4th Asia’s Best B-Schools Awards in 2013 from the CMO Asia with CMO Council in Singapore and the USA. He is also the recipient of 'Best Researcher of the Year in Finance’ in 2019 from the RULA Awards, powered by World Research Council and United Medical Council. Bharat Vikas Award was conferred to him in 2019 for excellence in the finance domain.
