Remember a bond operator: a guide to invest in corporate debt, 2024. Mark a. Rider. Published independently.
New and experienced corporate bond investors would be happy to be familiar Remember a bond operatorAsked about the top reference task in bond investing, I Frank J to my colleagues and students. Referred to Fiboji Handbook of fixed income securities,[1] Fiboji’s book is widespread as a Magnum Opus, a rider’s book released in 2024 adds value as a high technical guide enhanced by individual insight into analyzing corporate bonds and private credit, as well as a loan portfolio structured and managed.
Rider says that one can collect corporate bond portfolio, but only a skilled investor can choose the right bond to generate alpha without only significant losses. After having a 30 -year experience in reading this book and analyzing individual corporate bonds and managing a fixed -income portfolio, I can say that I learned new ways to analyze personal issues and struct the total portfolio that will immediately affect my investment activities.
Mark Rider is not a domestic name for analysts and portfolio managers, the way Frank is Frank. Nevertheless, his book is entitled to a place in the universe of the corporate bond practical guide because the issuers come and go and change the world of credit, such as with an explosion in private credit after the 2008 financial crisis. He has a rich background in the analysis and management of fixed income, from his early days to his tenure as the managing director of Deloite and Tucked and Goldman Sachs and his tenure as a corporate bond portfolio manager at the Sovereign Bond Portfolio Manager of the Government of Singapore, GIC. In 2023, he founded a global multi-strategy credit manager La Mar Sett. Depending on the financial crisis and its long term, he confidently speaks with a deep experience in corporate credit trenches.
keep in mind that Memoir Corporate fixed-incompatible investing does not have a primer, yet it begins with observation of financial markets (Part I). Posts of the book include the research process (part ii), portfolio management (part III), advanced subjects in portfolio management (part IV), and finally, learned and thought (part v).
As the observation as a underdevelopment may seem in its details, it provokes a very useful thinking about the shape and performance of the bond market, the largest issuer-colored state America-and its growing financing requirements, zero-bid rate policy (ZIRP) demands corporate loan in the environment, and re-re-refinning of such low-interest loans. The point of the book is summarized on page 40: “The loving investors adjust their portfolio by increasing the credit exposure when the spread of the investors spread and yield, then reduce and tighten the exposure when spread.” If only bond investment was so simple. This is why the author offers intensive practice and case study in the heart of the book.
Within the research process (Part II), I found that chapter 9: Analysis of the company Cash Flow and Chapter 10: Rider’s matrix analyzes on the track for a purpose: reducing unknown information about possible investment to make the best-informed decisions at the time of execution of business.
Within the portfolio management (part III), chapter 13: The difference between coupons, yield and bond returns provides sound insight into selecting issues based on benchmark rates and movements in credit spreads. It addresses hybrid securities in length, enhancing a subject that rarely enters the discussion of fixed income equipment. Rieder encourages investors to consider hybrids for high yields, accept all their risks compared to options in a fixed income market.
The following chapters (within portfolio management) are clearly moved to institutional investors: Chapter 17: Credit Trading Widgets and Rise of Chapter 18: Private Credit Opportunities and Challenges. The latter examines an asset class that potentially has no limit on leverage. Rieder raises many important questions related to the increase of private credit in the last decade:
• Does private credit have a less default profile than public debt?
• Will the omission increase as the interest rates rise?
• Can companies use private credit restructuring advertising infinitum?
• Can there be a systemic risk in private credit from a crowd of life insurers?
• Is there any liquidity anxiety?
The author suggests that the development of private credit markets would lead to a significant convergence between liquid and private credit. The issue can be detected over a decade of releasing private credit in future books and rapid increase in investment.
Advanced subject (Part IV) applies to investors and analysts in all asset classes. It addresses subjects such as financial engineering, bankruptcy, restructuring, and, my favorite, credit portfolio risk management. It also works with a subject that many of us have experienced, but rarely mentioned: a portfolio inheritance.
I have a criticism of this broad book. An index should have been included. Despite the author’s comprehensive notes and my bookmarking of several pages, I often found myself searching in terms of specific subjects and individuals.
To finish, Memoir There is an attractive guide for corporate bonds that are professionally focused but are accessible to all experience levels analysts and portfolio managers. It also serves as a launching point for intensive analysis of fixed -income subjects that may be affected by market volatility.
1. Frank J. Fiboji, it is old., Handbook of Fixed Income Securities, 9th ad, (Macgra Hill, 2021).