Managing a Corporate Bond Portfolio

Corporate bond portfolio management is a complicated process of balancing risk and expected returns. In managing this type of portfolio, you must account for a variety of factors that could impact the corporate bond market and, most importantly, the expected return of your portfolio. Managing a Corporate Bond Portfolio presents the essential elements of corporate bond portfolio management and provides you with state of the art analytical tools to help enhance returns and control the risks associated with corporate bonds. Fixed income security experts Leland Crabbe and Frank Fabozzi begin with an overview of corporate bond features, including the provisions contained in bond indentures, secured bonds and unsecured bonds, and interest payments. They also provide a solid foundation of the various corporate debt structures of corporate bonds. Moving from introductory basics to the sophisticated analysis of returns and risk of corporate bonds, Managing a Corporate Bond Portfolio offers portfolio managers and investors the most professional advice, insights, strategies, and tools to maximize corporate bond portfolio returns while minimizing risk. An in depth discussion of corporate bond valuation and price dynamics provides you with: A valuation framework, as well as various measures of corporate bond yields and spreads The most current measures of interest rate risk Useful formulas that reveal the relation between spreads and excess returns Strategies that can improve performance by anticipating changes in yield spreads and spread curves A thorough understanding of the fundamental factors that drive corporate spreads. . . and much more. Managing a Corporate Bond Portfolio continues its comprehensive treatment of corporate bond portfolio management by discussing corporate credit risk issues such as the microfundamentals of credit risk and credit analysis; measuring expected excess returns based on credit rating transition probabilities; and valuing subordinated securities. Rounding out the topic of corporate bond portfolio management, Managing a Corporate Bond Portfolio presents an analytical framework for valuing embedded options, and explores redemption analysis through an examination of how option values are affected by credit risk, and the valuation of putable bonds and their use in portfolio strategies. Corporate bond portfolio management is a dynamic process in which investors continually reevaluate which sectors of the market have the most attractive trade off between risk and expected return. With Managing a Corporate Bond Portfolio you ll learn to combine the many aspects of this discipline to create a portfolio that will put you in the best possible position to enhance returns in the corporate bond sector.