Corporate Bonds

Posts Tagged ‘bonds’

Question: Wanting to expand my financial knowledge.

I need some suggestions. I am currently earning an associates degree in management/marketing.... However, I am really interested in finance and i want to earn a bachelors degree in finance... I pretty much know all about stocks, mutual funds, bonds, pretty much all the basics plus some... But since I have an interest in this what more should i learn? For example is there any sites explaining what is needed to know about corporate finance? Or what is other criteria I should know? thanks!

Answer: I teach a survey class on Corporate Finance, so I try to read promising books on the topic. Here are a couple of books I would recommend:

Berman, Karen, and Knight, Joe. Financial Intelligence: A Manager’s Guide to Knowing What the Numbers Really Mean. Boston: Harvard Business School Press, 2006. Very readable overview of financial reports that emphasizes the decisions behind how the numbers are tracked and reported.

Bogle, John C., The Battle for the Soul of Capitalism. Yale University Press; New Ed edition, 2006. The author, founder and former CEO of Vanguard Financial Group, has been called “the conscience of the (financial) industry.” In this book he examines causes of the bubble of the late 1990’s and considers how much threat still lurks in today’s business and investment practices. Since you are just getting started in business, you will be facing the issues Bogle outlines; hopefully, you will also contribute to their resolution,

Adam Bold - Back to Basics: Rebuilding Your Personal Wealth

Question: Why are interest rates for T-bills and corporate bond rates are less correlated?

While for CDs and T-bills, the interest rates are correlated.

Answer: Corporate Bonds are subject to default risk. T-bills are risk free from default. And bank CD's are insured.

Rising Interest Rates and Bonds