preface
Recommendation

Preparation - Getting a Feel for Bond Investment

001 What is a bond?
Bonds, a promise to repay money according to promised conditions
What is the difference between a certificate of guarantee and a bond?
Bonds created to raise large amounts of money
The story of bonds: "Obunri bonds," created to bolster the South Korean government's finances.
002 How are bonds different from other assets?
Differences between bonds and deposits that pay promised interest
Differences between bonds and stocks, which are securities
003 Why should you invest in bonds?
Three Reasons to Invest in Bonds
004 Bond issuance information is in the bond birth certificate
3 major issuance conditions - issuer, maturity date, and issuance interest rate
Domestic bonds are issued with a face value of 10,000 won.
Check the issuance information of the bond by blindly following it.
005 Understanding the Life Cycle of Bonds
Bonds are born through issuance, live through circulation, and end at maturity.
Types of markets where bonds are traded
[Bonder Seo Jun-sik's Investment Advice] The 4 Best Online Sites for Bond Investing Information

First Yard - Various Interest Rate Terms You Should Know

006 Interest rates, interest rates, yields—are they all the same thing?
007 The Magic of Compound Interest That Grows Like a Snowball
When interest adds to interest, magic happens.
Compound interest rates are calculated as annualized rates of return.
008 Key Characteristics of Welfare
Characteristics of Compound Interest ① The difference in returns between simple and compound interest grows larger over time.
Characteristics of Compound Interest ② Even with small differences in rates of return, the difference between principal and interest increases.
Characteristics of Compound Interest ③ Steady returns yield higher returns than fluctuating returns.
009 Calculating compound interest rates? It's not difficult!
Compound interest calculation method that you must know if you are engaged in economic activities
Calculation method for converting period returns to compound returns
[Bond Story] An acquaintance of mine bought gold for 60,000 won during the foreign exchange crisis. Was it a successful investment?
[Bond Story] What happens if the country that issued the bond goes bankrupt?
010 How much will money be worth in the future?
As time passes, the value of money decreases.
Discount rates may vary depending on the situation.
011 Complex Interest Rate Terminology, Cleared Away
Nominal interest rate vs.
real interest rate
RP interest rate vs.
call rate
Base rate vs.
market interest rates
Pre-tax yield vs.
After-tax return vs.
Bank deposit conversion rate
Copix Rate vs. CD Rate
Bond yield to maturity
Surface interest rate vs.
effective interest rate
Terms used when the central bank raises interest rates
[Interview with a Bond Expert] The Outsider Who Earned the Highest Salary in the Bond Industry and Then Fired Up

Second Yard - Various bonds and interest rates by type according to classification

012 Type 1 of Bonds - Government Bonds with No Worries About Losing Money
① Representative of the bond market, government bonds
② Inflation-linked government bonds that hedge against inflation risks and offer excellent tax savings.
013 Type 2 of Bonds - For the livelihood of local governments
Municipal bonds issued
Most of the added digestive enzymes are sold right away, but the rich buy them?
014 Type 3 of Bonds - Bonds Issued by Public Enterprises
Government bonds, a name representing credit safety
015 Types of Bonds 4 - Financial institutions also issue financial bonds when they need money.
016 Types of Bonds 5 - Corporate bonds when a corporation raises funds
017 The higher the credit rating, the better the bond's treatment!
AAA? AA? Bond rating and credit rating
018 Bonds Age Reversely? Types by Maturity
The age of the bond decreases over time
Residual maturity is an important criterion for distinguishing bonds.
019 Types of bonds that vary depending on when interest is received
① Coupon bonds that receive interest regularly and regularly
② Compound interest bonds are attractive because interest is accumulated through compound interest.
③ Discount bonds purchased at a price lower than the interest received
020 The interest rate criteria vary depending on the classification.
Bond interest rates by grade and maturity as seen in the bond market valuation table
If you connect the bond market price index interest rates with a line, you get a yield curve.
[Bond Story] Did British government bond yields become the foundation of the British Empire?
[Interview with a Bond Expert] 80 Trillion Won in Customer Assets with Passion and a Sense of Mission
Keep it safe

Third Yard - Understanding Bond Prices and Yields, Calculation Methods, and Concepts

021 Add the price of the bond, the present value of all interest and principal.
022 Why do bond prices fall when bond interest rates rise?
Depositors' moods change depending on the fluctuations in interest rates.
Bonds have real gains and losses that fluctuate depending on interest rate fluctuations.
023 Interest rates and bond prices move in opposite directions.
024 The longer the maturity, the greater the price fluctuations.
025 Average Maturity is Important in Bond Calculation
The range of mood and price fluctuations also follow the average maturity.
The average maturity is called 'duration' in technical terms.
026 If you calculate bond prices correctly, the graph becomes convex?
027 How is bond investment yield calculated?
Bond investment yield = interest yield + capital gains/loss
Understanding the rolling effect can help you calculate the expected return on a bond.
[Bond Story] Launching in the First Half of 2024! 'Personal Investment Government Bonds' with Investments Starting from 100,000 Won
[Interview with a Bond Expert] A seasoned veteran with experience in every sector of the bond market.

Fourth Yard - Interest Rates, the Economy, and Smart Bond Investment

028 Interest rates serve as both a traffic light and a scale in the financial market.
029 Economic variables that move interest rates
① Economy: When the economy improves, market interest rates rise.
② Prices: When prices stabilize, market interest rates also stabilize.
③ Government fiscal policy: If the government issues national bonds to stimulate the economy, interest rates will rise.
④ Central bank monetary policy: When prices rise, interest rates are raised, and when the economy contracts, interest rates are lowered.
030 Interaction between the interest rate market and other asset markets
The bond and stock markets trade off each other
The real estate market and interest rate market are inextricably linked
If you only believe in theory, you'll be in big trouble: the interest rate and foreign exchange markets.
031 Which bonds are good to hold when interest rates fall or rise?
Long-duration bonds when interest rates are expected to fall
032 Bond Investment for Proper Diversification
It's not quantity that matters, it's quality
Stocks and bonds act as umbrellas and salt in the weather environment.
Smart Asset Allocation Using the "Umbrella and Salt" Effect
[Bond Story] Are you aware of the Legoland incident?
[Bonder Seo Jun-sik's Investment Advice] Are the Umbrella and Salt Effects of Domestic Stocks and Bonds Always Valid?
[Interview with a Bond Expert] Becoming a Beacon of Asset Allocation Investment Through Constant Innovation

Fifth Yard - How to Invest in the Bond Market, Futures, Funds, and ETFs

033 Government bond futures that allow easy trading of benchmark bonds in small amounts
The Basics of Futures Trading: KOSPI 200 Futures
Korea's representative interest rate futures, 3-year and 10-year government bond futures
[Just follow along] How to calculate the average duration of your portfolio.
034 Bond Funds: Let the Experts Manage Them
035 Bond ETFs More Useful for Individual Investors
ETFs with excellent liquidity and convenient trading
Bond ETFs traded on the Korea Exchange
[Just Follow] Finding the Duration of Bond ETFs Yourself
Why do so many people invest in bond ETFs?
[Bonder Seo Jun-sik's Investment Advice] Increase Expected Returns with ETFs with Excellent Rolling Effects
[Interview with a Bond Expert] I manage with the mindset that if I do 1% better, my clients will receive a correspondingly greater return.

Sixth Yard - Other Bonds and Foreign Bonds That Can Achieve Higher Returns

036 I won't miss out on either bonds or stocks, stock-related bonds.
Convertible bonds that can be converted into stocks when the stock price rises
Bond (B) + Stock Subscription Rights (W) = Bond with Stock Subscription Rights (BW)
Common Sense on Convertible Bonds (EB)
Things to keep in mind when investing in stock-related bonds
037 Capital securities with increasing liability as profits increase
Subordinated bonds, below general bonds, but above new capital securities
New capital securities, capital that earns interest like bonds
Contingent capital securities, Coco bonds
038 Overseas bond investment where risk and return coexist
Why You Should Invest in Overseas Bonds Despite the Risks of Exchange Rate Fluctuations
Investing in overseas bonds has the effect of investing in bonds and foreign exchange at the same time.
Hedging foreign currency exposure when investing in overseas bonds? There's no point.
[Bond Story] The Variety of Foreign Bonds
[Bonder Seo Jun-sik's Investment Advice] Practical Guide to Overseas Bond Investment
[Interview with a Bond Expert] The higher my bond performance, the bigger the Asian public works market becomes.

Seventh Yard - Let's Follow the Wireless Bond Investment Guide

039 Ants' Bond Investment: MTS Now the Trend
The era of convenient bond investment through MTS
How to access the bond purchase screen by securities firm
Information available on the 040 bond information screen
Bond information = issuance information + trading information
The Relationship Between Yield and Purchase Price When Buying Bonds
041 Safely obtain higher returns than deposits with term funds
How to find out deposit interest rates
Find bonds with the required maturity in the over-the-counter market
Invest in bonds selected from the over-the-counter market
042 Bond Buying Strategy for the "Umbrella and Salt" Portfolio
Buying added sugars in the over-the-counter market
Buying added sugars in the market
Selling the added sugars held in the market
If you want to invest your money and receive steady cash income, consider long-term subordinated bonds with monthly payments.
043 Securing capital gains during falling interest rates
Buying long-term government bonds in the over-the-counter market
Buying long-term government bonds in the stock market
044 Mezzanine Investment: Stability and Profitability
Buying convertible bonds in the secondary market
Buy Coco Bonds
045 Investing in overseas bonds for safer returns
Buying US Treasury bonds, a representative safe asset
Buy Brazilian government bonds with high yields
046 Bond Investments, Bond Funds, and ETFs: Leave it to the Experts
Buying bond funds
Buy bond ETFs
047 Follow the steps for investing in government bond futures.
048 A Useful Guide to Bond Investment Trading
[Interview with a Bond Expert] A 30-Year-Old Leader in the Bond Management Industry

Appendix - Annual Compound Interest Table
Conclusion

Bonds made easy! Finally, the opportunity to learn how to properly invest in such a great investment has arrived!
No blindly following along! Yeouido's top bond expert did it! Korea's first introductory guide to bond investing.

Bond investments suitable for portfolio flexibility and investment diversification with a solid outlook.
Anyone who learns about bonds once can apply it to all investments, transforming them into true investment experts.
-Bonds have the advantages of fixed income and cash flow, safety of principal and interest payments, and liquidity that can be converted into cash.

The birth of the complete bond investment bible: as safe as deposits and as high-yield as stocks.
The one and only bond investment textbook that will satisfy everyone from beginners to experts in the bond market.

"They say the wealthy invest in bonds, but how on earth should ordinary people get started?"
“How do I trade bonds, and how can I actually calculate their yield?”
“If I learn about bonds, will I also be good at investing in stocks?”

In 2023, individual investors' net bond purchases reached 38 trillion won.
Foreigners' holdings of domestic bonds have also increased, and net purchases of bond ETFs are also becoming more active.
The industry expects the U.S. Federal Reserve to begin cutting interest rates this year, and many investors are expected to be interested in bond investments in 2024, so much so that it could be called the "return of bonds."
While the cooling real estate market and high volatility in the stock market may be interpreted as a shift in focus toward bonds, the need for alternative investment vehicles is also being highlighted, as central banks around the world are expected to maintain a prolonged tightening policy and diversify investments in response to interest rate fluctuations.
Therefore, even setting aside the current situation as a prime time for bond investment, this is the perfect opportunity to learn about bond investment, understand interest rates and macroeconomic trends, and improve your future portfolio composition and stock investment skills.
Additionally, you can invest even a small amount of money in bonds to experience a new investment firsthand.


But there is one catch.
It is true that those who want to get started in bond investment have had a preconceived notion that bond investment itself is difficult, and this has prevented them from actually making an investment.
In particular, many people perceive bonds as complex and difficult, and they struggle to understand where and how to trade them, let alone calculate actual investment returns.
Additionally, many people believe that bonds are an investment asset for only a select few, due to the belief that most people who invest in them are wealthy.
But these difficulties are half right and half wrong.
A quick look reveals that bonds are an investment opportunity for anyone. Once you grasp the concept, you can apply it to all financial investments, including stocks and real estate, to gain not only actual returns but also a means of interpreting the macroeconomic flow of money.
A solution has been developed to dispel the misconception that bonds are inherently difficult.
This is because the collaborative work of author Seo Jun-sik, known as the best bond expert in Yeouido, and the 'Just Follow' series, recognized by 1 million readers, has created 'Just Follow Bond Investment'.
With the introduction of this book, the barriers to bond investment will be broken down, allowing both individual investors and institutional professionals to master bond investing in a single volume.
In particular, this book has the great appeal of being written by two young co-authors who explain the difficult concept of bonds in the easiest way possible, and making it easy to follow even for actual investment.
To avoid being bogged down by theoretical difficulties, the book provides detailed explanations. While the subject of bonds itself is considered light, the book is structured to facilitate a deeper, three-dimensional understanding by simultaneously involving small-scale, practical investments.
Now, let's stop worrying about bonds being difficult.
The collaboration of the Bond Investment X Just Follow series will undoubtedly create synergy that will improve the skills of all bond market beginners.
Those who understand interest rates and bonds know that they can succeed in all financial investments. Let's take this opportunity to completely master bonds.
The book 『Following Bond Investment Blindly』 will guide you along the way most easily.


No matter the economic situation, if you learn about bonds, all your investments will be covered.
Bonds, which have been overlooked due to market inaccessibility, can now be entered with confidence!

Until now, ordinary investors have considered bond investing to be the exclusive domain of a select few.
In fact, the bond market is a market where transactions are made on a scale far greater than the average person can imagine, and unless you're a serious investor, few people attempt to properly approach this seemingly complex investment vehicle.
However, with the recent decline in the stock and real estate markets, bonds have emerged as a new investment method in a situation where there are no suitable investment destinations.
Smart individual investors have also been riding this wave, bringing large amounts of money into the bond market, and everyone predicts that the importance of bond investment will only grow further in the future.
However, general investors not only do not fully understand how to invest in bonds, but also often struggle to understand the concepts and principles of bonds.
Because there was a lot of academic content on bonds rather than practical content, it was difficult to actually learn and apply it to investments.
But now you don't have to worry anymore.
This is because the country's top bond expert has compiled the A to Z of bonds into one book for those who want to learn and invest.
Gilbut Publishing's signature series, 'Just Follow', and bonds met to create 'Just Follow Bond Investment'.
Now, investors looking to venture into the bond market can learn about bonds with much greater ease.
We guide you step-by-step into the world of bonds, from the concept to the principles, so you can naturally understand them and ultimately move on to actual investment.
In particular, we tried to translate the concept of a two-dimensional bond into three-dimensional information that can be organically connected.
Readers can benefit from a systematic and organized approach to studying bonds, which have been difficult to understand.
Additionally, rather than relying on a complete understanding of all information, we encourage practical learning through hands-on investment experiences with small amounts of capital, allowing you to understand bonds faster than anyone else.
Therefore, it will be of great help to anyone seeking to invest directly in bonds, improve their stock investment skills, manage their asset portfolios, and understand interest rates, macroeconomics, and other factors.


Kill two birds with one stone: safe fixed income and capital gains with bonds.
For serious stock investors, bonds are the best choice for portfolio composition and investment diversification.

Long-term profits and finances → promised interest payments and profit realization from trading
Safety of principal and interest payments → Safe like deposits, but less risky than stocks
Liquidity that can be converted into cash → High liquidity that can be traded even before maturity date

Bonds are often likened to two rabbits.
This is because you can obtain both interest income, which generates a fixed and stable cash flow, and capital gains from trading in the market.
In addition, interest is generated through reinvestment of surface interest, creating a compound interest effect.
In addition to profitability, bonds are also advantageous from a tax perspective.
Under current tax law, when an individual directly invests in bonds, all profits from the bond investment are not taxed, except for a few specific bonds, and only profits earned as surface interest are taxed.
Additionally, for serious stock investors, bonds are the best investment to diversify their investment portfolio and are also a powerful tool to hedge their portfolio depending on the economic situation.
So, learning about bonds has the effect of using a two-birds-with-one-stone investment strategy.
Of course, any investment carries risks.
However, bonds can be exposed to relatively much less risk if proper learning and practice are combined.

With high interest rates and stock market volatility continuing in 2023, bonds have garnered the most attention.
According to an announcement by the Korea Financial Investment Association, the net purchases of over-the-counter bonds by individual investors are approaching 38 trillion won.
This was a time when curiosity about bonds was growing, and it is said that it is necessary to establish a bond investment strategy by observing the trend of the base interest rate in 2024 as well.
Moreover, all capital market participants must experience and actually feel these markets in order to develop a proper "investment eye."
In particular, bonds have shown a more robust outlook than stocks in 2024 and are considered an asset class with high resilience.
Therefore, it is important to remember that this is the most appropriate time to learn about bonds, and that they can play a major role in both direct bond investment and stock investment portfolio composition.
If you simply internalize the content in "Follow the Bond Investment Guide," you will undoubtedly gain a basic understanding of bonds and have the opportunity to generate ample investment ideas.
I am confident that this will lay the foundation for my future investment life.


Why You Should Start with "Follow the Bond Investment Guide"

He published "Bond Investment: Just Follow It," which covers everything from the introduction to bond investment, to advanced investment, and even practical investment, and received rave reviews from investment experts and people from various fields.
The key point is that it covers the difficult bond investment from basics to practice in one book.
This is because it is not easy to grasp the concept of bonds, calculate actual rates of return, examine interest rates and macroeconomic conditions, and actually invest.
Until now, it has been a difficult task to unravel the complex world of bonds at once, and it has been difficult to provide various additional understandings.
So, I thought that there would be great synergy if the formats of the 'Best Bond Expert' and 'Just Follow' series were combined, and that's how this book came to be.
Professor Seo Jun-sik, the author of the book, says the following:


“Let’s read this book lightly without overdoing it.
Even if you don't fully understand all the information, try investing a small amount yourself, following the book's guidance.
“If you have any questions during the investment process, it would be much more effective to refer back to the book.”

I'm not saying that investing in bonds is necessarily easy.
Any investment has its challenges, and both study and market experience are important to overcome them.
There is one thing that 『Just Follow Bond Investment』 wants.
The goal is to provide even the smallest insight as 'easily' as possible to all investors, whether they are new to bond investing, unfamiliar with investment methods, or simply want to become a better stock investor.
So, don't feel like bonds are difficult, but learn them one by one.
Then, your 'eyes' for viewing the market will gradually grow.
I hope that every investor who wants to learn about bonds will grow little by little.