Choice Review

With the increasing importance of fixed-income instruments in investment portfolios, there is a need for a better understanding of these securities. With various combinations of call, sinking fund, default risk, marketability, and taxability characteristics, fixed-income instruments are not so simple as introductory textbooks would lead you to believe. Wilson's work is an attempt to satisfy this need by analyzing the features of bonds, convertibles, and preferreds and their implications for investors. It is not, however, a discussion on the techniques and practices of bond portfolio management. The first section of the book is essentially an investigation of the maturity and coupon features of corporate bonds. Wilson also includes in this section a chapter on the sinking fund and call provisions for bonds. The next section devotes three chapters to an analysis of preferred stock, including such topics as adjusted rates and redemption policies. The last section of the book provides valuable background material in the form of discussions on bond ratings, financial statement analysis, and bond portfolio performance. This work would make an attractive acquisition for any academic/corporate library servicing those with an interest in financial securities and markets. With its complete, but interesting treatment of the various institutional and contractual details regarding fixed income securities, this book fills a void left by the standard college textbooks in the area. Lower-division through graduate-level audiences.-S.P. Ferris, Virginia Polytechnic Institute and State University