Applied Portfolio Management - Video 4 - Fixed Income Asset Management

Fixed income refers to any type of investment under which the borrower or issuer is obliged to make payments of a fixed amount on a fixed schedule. For example, the borrower may have to pay interest at a fixed rate once a year, and to repay the principal amount on maturity. Fixed-income securities can be contrasted with equity securities – often referred to as stocks and shares – that create no obligation to pay dividends or any other form of income.

What Is Portfolio Management?
Portfolio management is the art and science of selecting and overseeing a group of investments that meet the long-term financial objectives and risk tolerance of a client, a company, or an institution.

Portfolio management requires the ability to weigh strengths and weaknesses, opportunities and threats across the full spectrum of investments. The choices involve trade-offs, from debt versus equity to domestic versus international and growth versus safety.

[whatacruelchoice]

I love that you decided to sport a bow tie for the bonds lesson.

[based_gigachad]

I really wish he still did this type of content, this is way better. This guy is really smart and I love this stuff

[RealWajahat]

Another great episode. 4 sessions done...

[Gogglesofkrome]

another amazing contribution to financial education on the internet. There is no expression that would reasonably portray just how much this has helped those who are willing to learn.

[worldpeacevsinnerpeace]

It's about Bond. Investment Bond 😁.Thanks Patrick. Love your videos.

[surething]

Rare value everyday! I feel soo lucky for finding your class Mr. Boyle!

[peterbradshaw]

Learnt about the three Cs from Jean Tirole's book Theory of Corporate Finance .

[SusieAspen]

Thanks for explaining the Bond Ladder; it's perfectly logical. I needed you to point it out, however.

[ianflem]

Thank you sir! I learned more in one hour than my entire life.🙏

[leverageearnings]

The least seen videos always bring the highest quality of information. Thank you Mr Boyle !

[emmanuelv]

Very good content enjoying how bond works. Thank you Patrick.

[joshuadias]

Hi Patrick, in your example at 37:00 bond valuation you mentioned a 5% bond where the next day the interest rates drop to 4%. So we would value the bond such that the 5% coupon would equal 4% interest on the bond.

My question: **Why would someone buy the 5% bond vs the 4% bond if the interest you are getting on your capital is still 4%?**

I came up with 2 scenarios.
[a] If the amount to be invested perfectly fits a multiple of the 5% bond or a combination of the 5% and 4%.
[b] If you want a bond that matures at the specific maturity date of the 5% bond.

[yoginelson]

Patrick thank you for teaching me new info and refreshing my memories of the old.

[DREAMERS]

"a bit of a conflict of intrest" such a nice way of saying blatant corruption 😂

[hfhfhf]

Please tell me how CAN I work for you? Happy to work for free because the value to learn from you would definitely worth it.

[denisef]

My favorite class so far, thank you Mr. Boyle!

[riankashyap]

Pls cover portfolio management for short options where goal is to profit from theta decay portfolio. Payoff is non linear so how to manage risk and optimize capital allocations ???

[square_waves]

I guess I just don't understand the ratings agencies in practice. Why don't the market participants just do this analysis themselves?

[kp]

54:10 - why prefer owning a callable bond then, if the rates are going up? It's not like anyone is going to buy it out?

[leonardotansil]

Thank you very much for the great explanation!