Good Debt Cheap: Value Investing in Bonds, Preferreds, and Other Fixed Income Securities

Most fixed income securities return barely better than a bank savings account. Those that promise more often carry big risks.

But value investors are able to find bonds and preferreds that outperform without increasing risk. They use common sense and simple analyses to identify fixed income securities that beat even exceptional stocks. Their advanced perspective reveals remarkable opportunities that others miss. This book moves you towards becoming such an expert. You’ll learn to:

SELECT great securities wrongly tossed into the junk bond dumpster.

DODGE the conventional metrics that mislead others.

FORESEE the exercise of embedded options.

FOCUS on the yield measures that matter and skip those that don’t.

ANALYZE contexts to view a preferred more as debt or more as equity.

INTERPRET economic indicators to predict conversions and redemptions.

This book shares with you a model for gauging fixed income securities from a value investing perspective. It brings key concepts to life with case studies that span industries from franchising to software to manufacturing, and geographies from the U.S. to Germany to Japan. And it does all this with straightforward language and clear math that anyone can understand.

In developing your skills you’ll master the nuances of debentures, notes, convertibles, floaters, zeros, bills, munis, paper, corporates, and sovereigns. You’ll understand duration, solvency, covenants, seniority, liquidity, and credit ratings. You’ll breeze through basics like bond ladders, yield curves, and tap issues. Most importantly, you’ll develop the justified confidence necessary to navigate the biggest, oldest securities market in the world. Make your experience in fixed income one of insight and success with Good Debt Cheap.