Investing for Income in Bonds

As large as the stock market is, it is dwarfed by the fixed-income market by roughly ten times, all things included. To be candid, it is by and large the province of institutional investors and professional traders. The purpose of this book is to give the individual, non-professional investor a knowledge base most people do not have.

Unlike investing in income producing equities such utility stocks where the investor might look for a company with a track record of increasing dividends over the years, investing in the fixed-income markets is just that; income that is fixed for a period of time.
To the average investor, the fixed-income market is for all practical purposes, hidden in plain sight. It doesn’t get the same kind of news coverage the stock market does. Professionals that make their living in this market get news from the wire services that the individual investor historically does not. The internet has changed that so it is just a matter of knowing where to look.
The problem an individual might have is deciphering that information. This is the market where Federal Reserve central bank monetary policy is carried out and how that impacts bank liquidity and lending capacity. What shape does the yield curve have and what is the best option for the individual investor to pursue? What are the risks involved in this market?

This book is intended for the individual investor with a sum of money to put to work. This market does share a common characteristic with all markets; there no free lunch. It is important to understand the risks and potential rewards that this market brings.