Bond Portfolio Investing and Risk Management,New

Excess returns or yields do not come without risk. Bond Portfolio Investing and Risk Management delves comprehensively, but intuitively, into the various risk factors and delivers the tools to understand, measure, control, and take advantage of risk premiums in practicalfixed income investing. As the financial crisis has made all too clear, this book's unifying treatment of risk and return is essential for all bond investors.' Andrew Ang, Ann F. Kaplan Professor of Business, Columbia Business School'This moves instantly to the top of my recommended list of important reading for conceptoriented fixed income investors. Profit by learning how a true expert makes riskreturn tradeoffs when constructing portfolios of bonds and related derivatives.' Darrell Duffie, Dean Witter Distinguished Professor of Finance,Graduate School of Business, Stanford University'Vineer Bhansali combines the mathematical rigor of a trained physicist with the commonsense wisdom of a schoolofhardknocks practitioner to deliver a unique prism into the world of bond investment and risk management post the Financial Crisis. The book is not just valuable, but extremely timely. You won't want to read it quickly, but slowly and thoughtfully, as it is an analytical mosaic, not simply a wellwritten narrative, even though it is indeed that. Bravo, Vineer!' Paul McCulley, Managing Director, PIMCO'Drawing on his years of experience as a portfolio manage, his knowledge of and contributions to the academic literature, and his quantitative training, Bhansali bridges the gap between book knowledge and the practicalities of successful, longterm investing. By focusing attention on bigpicture questions that are often forgotten in the course of portfolio 'optimization'Which options are you short? Who else is in the trade? What will happen in a liquiditystress scenario?this book will help asset managers to improve the riskreturncharacteristics of their portfolios and to avert disasters.' Bruce Tuckman, author of Fixed Income Securities and Director of Financial Markets Research, Center for Financial Stability'Fixedincome markets used to be peaceful and quiet, but the last several years have shown that these markets can be a little too exciting from time to time, and in this wonderful volume, Vineer Bhansali has done a masterful job of telling us how to deal with this new fixedincome world. With a Ph.D. in particle physics and enormous practical experience in the markets, Dr. Bhansali is uniquely qualified to help investors and portfolio managers navigate through the choppy waters that will likely characterize the financial system for the next several years.' Andrew W. Lo, Director, Laboratory for Financial Engineering, MIT Sloan School of ManagementAbout the BookBond Portfolio Investing and Risk Management helps you build portfolios to add value through every kind of economic cycle. Sharing his years of experience constructing robust, wellperforming portfolios that have navigated recurring crises, PIMCO portfolio managerVineer Bhansali explores the various risk factors inherent in fixed income investments, including yield curve shifts, twists, liquidity, and evolving risk factors such as government policy. Under an optiontheory based riskandreturn framework, you will gain intimate knowledge of the right valuation, investment, and risk management tools and confidently put them to use in practical portfolioconstruction.Basing his conclusions on his own expertise and the latest academic and practitioner research, Bhansali provides valuable insight into topics you would be hardpressed to find elsewhere, such as: Optionbased building blocks to valuation Measuring liquidity and stress risks Asset selection and risk factors Building stateoftheart macro models Inefficiencies in the market