Income Investing with Bonds, Stocks and Money Markets

Book description


You don't need to be ultra-rich or even moderately wealthy to look toward your nest egg for income.

This step-by-step guide from leading investment manager Jason Brady will show you how to use your savings to build a steady income stream and compound returns over time. His strategies help you:

  • Tap into the money-making potential of bonds
  • Reinforce your portfolio with income-producing assets
  • Understand how options affect your investments
  • Avoid adverse outcomes
  • Plan your retirement and reach your long-term goals

Whether you're a Baby Boomer or Gen Xer planning for the future, or a serious investor looking to learn more tricks of the trade, this detailed strategy guide will help you understand and choose the steadiest bonds, dividend-paying stocks, and low-risk securities on the market. Filled with specific examples, insider advice, and portfolio planning tips, it's your guide to today's complex marketplace.

Table of contents

  1. Cover Page
  2. Income Investing: An Intelligent Approach to Profiting from Bonds, Stocks, and Money Markets
  3. Copyright Page
  4. Dedication
  5. Contents
  6. Prologue
  7. 1. Investing for Income
    1. Slow, but Steady
    2. Yield and Investor Psychology
    3. Introduction to Asymmetry of Returns
  8. 2. Debt and the Cost of Money
    1. The History of Debt and Money
    2. What Is a Bond?
    3. Duration: A Measure of Time and Sensitivity to Change
    4. The Yield Curve: The Price of Money for Different Lengths of Time
    5. When the Cost of Money Changes: The Basic Economics of Interest Rates
    6. The Federal Reserve
    7. Key Economic Variables for Investors
    8. Inflation versus Deflation, Today and Tomorrow
  9. 3. The Wide World of Bonds: Types of Markets and How to Look at Them
    1. The Amazing Variety of Fixed Income
    2. Credit Ratings: Let’s Get This Out of the Way
    3. The Trinity of Balance Sheets
    4. Government Bonds: U.S. Treasuries, Foreign Governments, Municipal Bonds
    5. Corporate Bonds
  10. 4. Optionality and Selling the Upside
    1. Yield Is a Terrible Measure of Return
    2. Options Basics
    3. Optionality in Fixed Income
    4. Effects of Optionality on Investment
    5. Yield as a Cushion
    6. Normal Distributions and Overconfidence
    7. Correlation and Feedback Loops
    8. Examples of Asset Classes and Products That Illustrate Optionality
  11. 5. Equities for Income
    1. Upside Optionality and Volatility
    2. Dividends versus Bond Yields
    3. Dividend Payers Outperform
    4. Go Global
    5. It’s Not Yield, It’s Growth
    6. Windstream versus China Mobile: High Yield versus Growing Yield
    7. Income from Stocks … for the Long Run
  12. 6. Banks: A Case Study
    1. The Mechanics of a Bank Balance Sheet
    2. Banks as Investors
    3. Liquidity and Solvency
    4. The Government Steps In
    5. From Subprimes to Sovereigns: Banks in Europe versus Banks in the U.S.
  13. 7. Toward a Sustainable Portfolio
    1. Minksy’s Financial Instability Hypothesis
    2. Bottom Up: Margin of Safety
    3. Top Down: The Market Environment
    4. Portfolio Construction
    5. Permanence of Capital
    6. Reflexivity
    7. Conclusion
  14. Notes
  15. Index

Product information

  • Title: Income Investing with Bonds, Stocks and Money Markets
  • Author(s): Jason Brady
  • Release date: August 2012
  • Publisher(s): McGraw-Hill
  • ISBN: 9780071791120