Contents

Preface

Acknowledgments

PART ONE

The Investing Environment

CHAPTER 1

Expect the Unexpected

The Model Has Changed

Lessons Learned

From Bad to Worse

CHAPTER 2

Navigating through Troubled Water

Debt Ceiling

Triple A: Lost, but Not Forgotten

Possible, but Not Probable, Consequences

Warning Signs

CHAPTER 3

Lessons Learned

Patterns Emerge

Money Markets

Treasury Bills, the Favored Asset Class

Municipals Felt the Pain as Well

Auction-Rate Markets Were Hit Hard

CHAPTER 4

Direction in a Sometimes Directionless Market

Finding Direction

PART TWO

The Fixed Income Investor

CHAPTER 5

Define the End Investor

Risk

Risk-Averse Investor

A Problematic Trade?

Risk-Taking Investor

Define Your Strategy

Active Strategy

CHAPTER 6

Portfolio Construction

Factor 1: Defining Your Risk

Factor 2: Aligning Goals

Conservative Strategy

Moderate Strategy

More Aggressive Strategy

Factor 3: Portfolio Analysis

Reduction of Credit Risk

Government Securities

Risks to Consider

Bottom Line

CHAPTER 7

Asset Allocation

The Road Map

Going Global

CHAPTER 8

The Federal Reserve and Central Banks

Hawks and Doves

The Fed Funds Rate

A Short-Term Fixed Income Investor

Hooked on Accommodation

Deposits with Central Banks

What about the United States?

FOMC: Look for Clues from the Fed Statement

What to Look For from the Fed … Clues?

FOMC Statement: August 2011

QE or Not QE

Calming Statements for Investors

CHAPTER 9

The Economy and the Markets

The Payroll Picture: The Backbone to the Economy

Bureau of Labor Statistics Website ...

Get Strategic Fixed Income Investing: An Insider's Perspective on Bond Markets, Analysis, and Portfolio Management now with the O’Reilly learning platform.

O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.