Andrew Allentuck

Friday, December 15, 2000

All About Bonds and Bond Mutual Funds
By Esme Faerber
McGraw-Hill, 342 pages

This sophisticated manual on selecting bond funds explains the basics of debt instruments, their risks, rates of return, liquidity, duration and valuation, macroeconomic determinants of bond price changes, and gives abundant information on esoteric funds including zero coupon funds, funds of municipal bonds (of interest to U.S. taxpayers) and funds that invest in short term commercial paper, bankers' acceptances, and high yield or junk bonds. There is detailed information on collateralized mortgage obligation funds and funds that specialize in convertible bonds. For the investor who has reason to invest in the U.S. bond market through a U.S. brokerage and wants to use a mutual fund for that purpose, this book is a superb guide.