Bonds Are Not Forever : The Crisis Facing Fixed Income Investors.
Title:
Bonds Are Not Forever : The Crisis Facing Fixed Income Investors.
Author:
Lack, Simon A.
ISBN:
9781118659601
Personal Author:
Edition:
1st ed.
Physical Description:
1 online resource (242 pages)
Contents:
Bonds Are Not Forever: The Crisis Facing Fixed Income Investors -- Copyright -- Contents -- Preface -- Acknowledgments -- Chapter 1: From High School to Wall Street-The Bull Market Begins: Inflation Memories -- As Bad as It Gets -- Trading in Gilts -- The Old Class Structure -- A Nineteenth-Century Market -- Finance Starts to Grow -- Is Finance Good? -- Investing After the Bubble -- Chapter 2: A Brief History of Debt -- Interest Rates in Ancient Times -- Medieval Credit -- The Beginnings of Modern-Day Finance -- Borrowing Reaches the Mass Market -- Student Debt -- Big Borrowers in History -- What We Owe Now -- Chapter 3: Derivatives Growth -- Welcome to New York -- Early Derivatives Growth -- Swaps Take Off -- Size Isn't Everything -- Derivatives Reach Omaha -- Norwegian Wood -- Chapter 4: Bond Market Inefficiencies for Retail: A Simple Market Model -- Stocks Are Fairer Than Bonds -- Why Change Is Slow -- Structured Notes -- The Internet Threatens the Swaps Oligopoly -- Municipal Bonds -- Chapter 5: Trading Derivatives: Before Banks Were Exciting -- Computers and Swaps -- Should Banks Innovate? -- Growth in Innovation -- Volcker's Problem -- Bring Me Clients with a Problem -- Derivatives Missteps -- Trading by the Book -- An Options Book Blows Up -- Chapter 6: Politics: Government-Controlled Investing -- Why Should We Worry? -- Who Says There Is a Problem? -- Look to the Future -- Looking Ahead -- Monetization-A Thought Experiment -- Imperial Overstretch -- More Debt Means More Banking -- Chapter 7: Managing Risk 1990-1998: Risk-Oriented Market Making -- Traders and Risk -- Why Traders Are Bad at Budgeting -- The Growth of Global Trading -- Managing Obscure Basic Risks -- What's the Social Purpose? -- Wall Street Fuels the Debt Growth -- Chapter 8: Inflation: A Brief History -- Germany's Defining Economic Experience -- Inflation Today.
The Fed's Huge Mistake -- You Can't Spend Quality Improvements -- What Critics Say -- Measuring What They Can, Not What Counts -- Chapter 9: Bonds Are Not Forever: Putting It All Together -- Wall Street Built It -- Make Your Own Bond -- High Dividend, Low Beta -- Hedged Dividend Capture -- Master Limited Partnerships (MLPs) -- Deep Value Equities -- Debt Is Bad -- Bonds Are Not Forever -- References -- Glossary -- About the Author -- Index.
Abstract:
An up-close look at the fixed income market and what lies ahead Interweaving compelling, and often amusing, anecdotes from author Simon Lack's distinguished thirty-year career as a professional investor with hard economic data, this engaging book skillfully reveals why Bonds Are Not Forever. Along the way, it provides investors with a coherent framework for understanding the future of the fixed income markets and, more importantly, answering the question, "Where should I invest tomorrow?" Bonds Are Not Forever chronicles the steady decline in interest rates from their peak in the 1980s and the concurrent drop in inflation during that period. Lack explains how those two factors spurred a dramatic growth in borrowing among both governments and individuals. Along the way, Lack describes how a financial industry meant to provide capital needed to drive productivity and economic growth became disconnected from Main Street and explores the grave economic, social, and political consequences of that disconnect. Provides practical solutions for avoiding the risk of falling bond markets and guaranteed negative real returns on savings Explains how the bursting of the real estate bubble in 2007-2008 led to massive borrowing by governments as they attempted to offset a sharp fall in economic activity Details how the trends of exploding debt and a financial sector that has grown much bigger than it needs to be have dramatically changed the game for savers Offering a uniquely intimate, yet analytically thorough look at the coming fixed income crisis, Bonds Are Not Forever is must reading for investment professionals, as well as retail investors and their advisors.
Local Note:
Electronic reproduction. Ann Arbor, Michigan : ProQuest Ebook Central, 2017. Available via World Wide Web. Access may be limited to ProQuest Ebook Central affiliated libraries.
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Electronic Access:
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