Managing a Family-Fixed Income Portfolio

Rating:
Summary: one of the (few) really good books on bonds
Review: Contrary to the stock market where small orders (say for 13 stocks priced at $47) are not uncommon (in fact, encouraged), the US bond market is a market dominated by institutions and high net worth individuals (I say US because the situation is quite different in Europe). A bond broker in the US is not eager for your business unless the size of your order is at least six figures. This fundamental market reality is reflected in the kinds of books on investing: bookstores offer countless books on stocks, but only very few books on bonds (if any at all). Almost all books on bonds recommend that investors do not buy individual bonds but put their money into bond mutual funds. The book under review is an exception to this rule. Written specifically for the needs of the "high net worth" individual, it deals with all aspects of constructing and maintaining an individual bond portfolio. The emphasis is on government and municipal bonds. The more interesting class of emerging market bonds is completely left out presumably because of risk considerations. The book is very well written and a pleasure to read. Although it is impossible to write a book on bonds without using equations, the author restricts the use of formulas to a minimum and prefers to illustrate abstract concepts using numerical examples. In my opinion, this is one of the best books on bonds. I recommend it highly to everybody interested in buying individual bonds including "low net worth" individuals. The clarity of exposition and the wealth of details is not matched by the competion.