Fixed-Income Securities: Valuation, Risk Management and Portfolio Strategies

the best book on the subject but not for beginners (too much math in it)

Finally a fixed income book to rival the Fabozzi syndicate. The primary advantage of this book is that the pedagogy is integrated and progressively builds understanding in the same manner as my best professors taught. It is a book of tools that, if mastered, will render an effective fixed income toolbox suitable for mid-level fixed income positions. An aside on the math in the book . . . Fixed income is a necessarily quantitative asset class. For example, duration and convexity are first and second derivatives of equations. However, to use duration and convexity you only need a modicum of algebra. Calculus and linear algebra will certainly lead to a deaper understanding of the topics, but it will not diminish usefulness if you lack the maths. Imagine purchasing a book in french with the english translation on the facing page. Is the value of the book diminished because it includes my non-native french? In my opinion, no. Any [CFA, FRM, PRMIA, MBA student, finance/economics u-grad] has the chops to master the content in this book.

This book blows anything by Fabozzi away. But I suppose that isn't saying much so let me be clearer: this book is worth it. There is no padding here (like some of Fabozzi's books), and there is no superficial treatment here (like most of Fabozzi's books). This is a clear, well-ordered, logical, useful, practical, interesting, well written, and above all, helpful book. It covers bonds very well, the term structure of interest rates and various theories very well, hedging duration thoroughly, investment strategies well, and swaps and futures in a helpful (but by no means comprehensive) way. It also covers interest rate modeling and assumptions with particular attention to credit spreads (but again, as an introduction, not a comprehensive treatment). The lightest chapter is on securtized products (MBS, ABS, CAT bonds, etc.), but those sub-fields are best left to specialized texts (which hopefully these authors will write and address with better clarity than you-know-who). Unlike a lot of books I have purchased on fixed-income for school, teaching, and work, this one is definitely worth it. I highly recommend it as a through introduction to a broad range of fixed income instruments, but also recommend that folks looking for specifics in sub fields (high yield, distressed, asset-backed, structured products, etc.) turn to more specialized texts. I now recommend this text to my students over others available covering the same material.

Without any financial background, I have learned all details of fixed income securities. The book is accessible to reader and easy to grasp without any previous introductory texts. All theory is backed up by number of exercises - after every chapter. If you really want to learn by practical approach and avoid dry theory and confusing explanation by the rest of so called classic books for securities, this is the book for you.

This is an outstanding textbook that is worth every penny I spent on it. It has everything you need for an MBA in finance course on fixed-income securities.This book is the only one on the subject that has several worked out examples and end of chapter problems and solutions. That is very useful if you want to master the subject. You will encounter plenty of practice opportunities.All the other books-Tuckman, Fabozzi, Sundaresan, and the rest-while they make good reference books to have on your shelf, they are very poor textbooks to learn from.If you want to master fixed-income securities, you need to have this textbook.Thank you,