Bonds And Bond Derivatives

This introduction to bond markets and bond derivatives is ideal for academics as well as for executives in commercial businesses and financial institutions. While many topics about debt instruments involve considerable mathematics, this text presents the essential elements in an intuitive and relatively non-mathematical way. For practitioners, the book can be used as a training manual and reference source for firms involved in the debt markets.

In the last 30 years, bond markets have increased significantly in size and complexity. The two major causes are the enormous growth of the level of debt and the high variability of interest rates. Because of interest rate variability, there has been a great increase in potential losses to borrowers and lenders from poor debt choices.