Notes

Chapter One: Bondspeak

1. Brian Reynolds, “Pulling the Trigger on Bonds,” www.thestreet.com/_tscs/ comment/numbersgame/1248468.html, January 10, 2001.

2. William J. Bernstein, The Four Pillars of Investing (McGraw-Hill, 2002), p. 297.

Chapter Two: The Risks of Fixed-Income Investing

1. Benoit B. Mandelbrot and Richard L. Hudson, The (Mis)Behavior of Markets (Basic Books, 2004), p. 24.

2. UBS Paine-Webber Inc., “Impact of the President’s Tax Reform Plan Upon the Municipal Market,” Research Update, January 17, 2003.

3. A.G. Edwards, “Municipal Industrial Development Bonds,” Research Re-port, April 12, 2005.

4. Pavan Wadhwa, “Municipals as an Asset Class,” Journal of Investing (Summer 2005).

5. A.G. Edwards.

6. Fitch, “Municipal Default Risk Revisited,” fitchratings.com, June 23, 2003.

Chapter Three: The Buying and Selling of Individual Bonds

1. Lynn Hume, “Judge Dismisses SEC Case Against Former Broker, Rules Markups Not Excessive,” Bond Buyer, May 1, 2002.

Chapter Four: How the Fixed-Income Markets Really Work

1. Michael C. Jensen, “Some Anomalous Evidence Regarding Market Efficiency,” Journal of Financial Economics (June/September 1978).

2. Mark M. Carhart, “On Persistence in Mutual Fund Performance,” Journal of Finance (March 1997).

3. American Law Institute Third Restatement of the Law, Chapter 7 (The Administration of the Trust), Topic 5 (Investment of Trust Funds), Section 227, “General Note on Comments e through h,” subtitle Market Efficiency.

4. W. Scott Simon, The Prudent Investor Act, p. vii.

5. Christopher R. Blake, Edwin J. Elton, and Martin J. Gruber, “The Performance of Bond Mutual Funds,” Journal of Business (July 1993).

6. Kevin Stephenson, “Just How Bad Are Economists at Predicting Interest Rates?” Journal of Investing (Summer 1997).

7. John Bogle, Bogle on Mutual Funds (Irwin, 1994), pp. 113–114.

8. Russel Kinnel, “Time to Clear Out the Dead Wood,” Momingstar Fundlnvestor, December 2004, p.3.

9. William Sherden, The Fortune Sellers (Wiley, 1998), pp. 61–67.

10. David Altany, “New Jobs for the Number Crunchers,” Industry Week, April 20, 1992, p. 76.

11. Michael Lewis, Moneyball (Norton, 2003), p. 66.

12. Dimensional Fund Advisors.

13. Ibid.

14. Antti Ilmanen, Rory Byrne, Heinz Gunasekera, and Robert Minikin, “Which Risks Have Been Best Rewarded?” Journal of Portfolio Management, Winter 2004.

Chapter Five: The Securities of the U.S. Treasury, Government Agencies, and Government-Sponsored Enterprises

1. www.geology.sdsu.edu/classes/geol35 l/03floods/floodslect.htm.

Chapter Seven: The World of Corporate Fixed-Income Securities

1. Edwin J. Elton, Martin J. Gruber, Deepak Agrawal, and Christopher Mann, “Explaining the Rate Spread on Corporate Bonds,” Journal of Finance (February 2001).

2. Ulf Herold and Raimond Maurer, “How Much Credit?” Journal of Fixed Income (March 2003).

3. Laurence Gonzales, Deep Survival (Norton, 2003), p. 134.

Chapter Eight: The World of International Fixed-Income Securities

1. Truman A. Clark, “Does Foreign-Exchange Hedging Reduce Risk in Global Portfolios?” February 2000 ( www.dfaus.com).

2. Annette Thau, The Bond Book, 2d. ed. (McGraw-Hill, 1992), p. 226.

3. Claude B. Erb, Campbell R. Harvey, and Tadas E. Viskanta, “Understanding Emerging Markets Bonds,” Emerging Markets Quarterly (Spring 2000).

4. Ibid.

5. Ibid.

Chapter Ten: The World of Municipal Bonds

1. “Municipal Rating Transitions and Defaults,” Standard and Poor’s, June 13,2001.

2. Advertised yield for Schwab Value Advantage Money Fund-Investor Shares, https://ssl.schwabinstitutional.com, July 2, 2004.

3. Coupon rate for Missouri State Health & Educational municipal bond (VAR-Washington University-SER C), Bloomberg, July 2, 2004.

Chapter Eleven: How to Design and Construct Your Fixed-Income Portfolio

1. Robert M. Dammon, Chester S. Spatt, and Harold H. Zhang, “Optimal Asset Location and Allocation with Taxable and Tax-Deferred Investing,” Journal of Finance (June 2004).

2. Ibid.

3. Ibid.

Chapter Twelve: Summary

1. Peter L. Bernstein, The Portable MBA in Investment (Wiley, 1995), p. 1.

2. Investment Management, edited by Peter L. Bernstein and Aswath Damodaran (Wiley, 1998), p. 379.

Afterword

1. Report on Transactions in Municipal Securities, Office of Economic Analysis and Office of Municipal Securities, Securities and Exchange Commission.