The author also does a terrific job pointing out the different types of risk (reinvestment, inflation, currency, interest rates, credit, etc.) for all the different types of securities and duration of securities. She then tells you how to select a security appropriate for your needs given the risks. For example, if you don't want to worry about a rise in rates destroying the value of your bond, buy one that you can hold to maturity and collect at par. Better yet, buy one with a short duration.

In conclusion, any well rounded financier needs to know about bonds--even Warren Buffet--the famous "stock picker"--invests a ton in bonds. This book is a great start to earning this skill.

Bonds are an important asset class to own, regardles of the current interest rates or stock market performance. You will gain a lot of knowledge either for your own informational needs or professional use.

She dissects every type of bond and gives you a step by step guide on how to acquire the and which ones would appropriate for you.

Her voice is very refreshing in a world gone stock crazy. She doesn't pull any punches. I found the appendix very helpful.

The only draw back I have is the fact she doesn't mention Bond Futures indepth. For 11 years I have traded futures and written three books on the subject. Bond Futures are definitely an alternative to some of the expensive bonds and junk bonds (corporate) she mentions.

Great book overall.

To be fair, the credit derivatives market exploded in just the last 3 years, and synthetics (credit derivatives and total return swaps) now make up 70% of securitizations bought by bond funds. Tavakoli has written an excellent and entertaining book on these products: "Credit Derivatives" (Second Edition).