Book Description

Since its inception, the market for credit derivatives has shown impressive growth and is expected to hit a volume of more than $4.8 trillion by 2004. Credit derivatives have begun to transform modern banking; they have become a standard instrument for the management of default risk; they are being used for risk management and hedging as well as for speculation, balance-sheet management and regulatory capital purposes.

Despite their great usefulness, even established professionals often feel insecure when it comes to the quantitative analysis of the prices and risks of credit derivatives. Confronted with a bewildering variety of fundamentally different pricing approaches, it can be very challenging to understand their relative advantages and disadvantages and to choose the "correct" one for the problem at hand.

In this book, the author carefully explains the different pricing models for credit derivatives in a very application-oriented way. Based on his wide experience in professional training for credit derivatives analysis, the models are developed with a view to their application to real pricing problems rather than just presenting the theory.

Philipp Schönbucher is one of the most talented researchers of his generation. He has taken the Credit Derivatives world by storm. In this book he carefully explains the concepts and the mathematics behind all of the most important and popular credit risk models. Professor Schönbucher has filled an important gap on the quantitative finance bookshelf. –Paul Wilmott

The reader is presented with a clear, concise and readable treatment of credit pricing models that will appeal to practitioners and academics. It provides a useful roadmap to the many daily challenges that face practitioners. It will become a standard reference.
–Stuart M. Turnbull, Senior Vice President, Fixed Income Research, Lehman Brothers, NY

"This is the most comprehensive, and also the clearest, book on the details of constructing credit risk models that I have read. Throughout, it is directly useful for general value-at-risk credit modelling as well as its stated focus of credit derivatives. Readability is greatly enhanced by its step-by-step organization across what has grown to be a large topic area and the focus of its single author, as opposed to a collection of disjointed papers. Alternative modelling frameworks are written in a common notation and the reader is given all the details needed for direct implementation. The author, Philipp Schönbucher, is clearly one of the top researchers in this area, even before the writing of this book." –Greg M Gupton, DefaultRisk.com

"Philipp addresses a wide range of modelling issues in the fast growing market of credit derivatives. He covers a broad spectrum of topics starting with the simple everyday trading tools while gradually building up to the more complex mathematical models. It successfully bridges the gap between academia and practice in an elegant and easy style, making it a valuable book for a wide audience"  –Ebbe Rogge, Product Development Group, Financial Markets, ABN AMRO
... Read more

Reviews (6)

Amongst the best of a bad lot
The state of theory is in such tremendous flux at present with a majority of research unpublished and a growing consensus that the state of the art is entirely inadequate. No book could possibly please industry researchers at this point, but Philipp contributes some ideas and clarification here and there and some leads which are valuable. He is perhaps a little dismissive and pessimistic when the theory wanders into hard mathematical problems, and to to a large extent his book ends where the fun stuff begins. Nontheless I would recommend, especially to those entering the field.

Academic's Imperfect Idea of the Market
This book on credit derivatives models is written by an academic without a feel for how the market trades in practice. Schonbucher presents the mathematical equations without expanding on the meaning of the models or their application.

There are some errors of fact when he discusses how certain products work, such as first-to-default baskets, a serious error in and of itself, but unfortunately there are additional similar errors which show the author has an imperfect understanding of the market he writes about. All in all this book was an unsatisfying treatment of the topic.

Models in theory
Nice equations, but hasn't kept up with Ph.D.'s who work on Wall Street and know the theory, thoroughly understand the products, and can apply practical but theoretically sound compromises to accommodate reality. Ph.D.'s at work in finance - including myself (physics) - are probably too busy to write the definitive modelling book. This book fails to address key ingredients such as daycounts, settlement conventions, documentation asymmetry, and more.

Informative, Rigorous, Excellent
The book covers the basics of credit risk modeling and derivative pricing (both structural and intensity type of models), explained in a clear style with enough detail to enable implementation (a rarity in financial literature!). Basics of the theory of stochastic processes and risk-neutral pricing are also covered. Calibration methods for the models are clearly explained. Due to the limited scope, some topics are given only cursory coverage (Copula function methods, role of interest-rates models etc.), but even then, enough references are provided. A very useful, concisely written tome!

Good Model Overview
This is a fine overview of credit derivatives modeling. The model explanations are good, but the book may have benefited from more disclosure about data limitations and the current sources of data. Value dislocations due to documentation language are not captured by the models, especially in the light of ISDA's 2003 language changes. More detail on applications and the need to deal with risks introduced by specific structures would also have been helpful.

Curiously, there are a few conventions inconsistent with market practice used in this book. For instance, the author defines credit risk as default risk, ignoring the standard definition of credit risk which includes general credit spread widening, and credit downgrades. It also seems the author is unfamiliar with how first-to-default baskets are traded, and seems to think that premiums of the survivors are paid after a first-to-default event (They cease.). These observations aside, this is a long-awaited reference for credit derivatives professionals.

For the above risks, I recommend two other sources. Applications and documentation risks are clearly explained in Tavakoli's "Credit Derivatives" (2nd Edition). For professionals who want to know how to apply derivatives in structured finance, I highly recommend Tavakoli's just released book: "Collateralized Debt Obligations and Structured Finance". ... Read more

Book Description

Praise for Risk budgeting

"Professor Pearson has raised the bar for books on market risk. Moving beyond descriptions of VaR calculation and stress testing, he provides careful discussions of both the refinements and the limits of the VaR technique. Even more importantly, this book provides structure to the heretofore vague idea of ‘risk budgeting.’ "
–Charles Smithson, Managing Partner, Rutter Associates

"Pearson has written an excellent resource for risk management practitioners who actually need to compute and use VaR. Numerous concrete examples make a broad range of VaR techniques accessible to the people who actually need to use them. The book also provides tangible applications of risk budgeting, a term often used but rarely made relevant. Pearson has put meat on the bones for plan sponsors who want to actually employ risk budgeting techniques."
–Bennett Golub, Co-head of Risk Management and Analytics,
Founding Partner, BlackRock

"An excellent book. This text provides a bridge from the theoretical to the practical, and clears the fog between the buzzwords of risk budgeting and the realities of a useful new portfolio management tool. Pearson’s writing is well balanced between needed academic foundation and the practicalities of managing portfolios."
–Rob Roy, Director, Cash and Investments, Adventist Health System

"I just wish I could summarize this book as ably as Professor Pearson summarizes the voluminous literature on Value-at-Risk. Unfortunately, I suspect no further compression is possible. To reduce the risk of reading rubbish, your best bet is to read this book."
–Dr. Peter Carr, Senior Consultant, Risk Capital Management ... Read more

Reviews (2)

Hands on and rigorous
A very well written book on Risk Budgeting from a modern perspective. VAR methodologies, stress testing and working examples are very well written and a must for anyone wanting to either get into the risk measurement/ management field or an advanced practitioner in the field. I would highly recommend this book for someone wanting to get the both the theoritical and hands on practical approach to risk measurement of equity and fixed income portfolios.

Title and subject don't match.
This is a book on VaR masquerading as a book on Risk Budgeting. I would guess that the publisher changed the name of the book.

There are about fourty pages of three hundred that actually deal with risk budgeting: the first 153 pages are an outline of VaR. Its a fair introduction to VaR, but the title is misleading. ... Read more

Book Description

"Once I picked it up I did not put it down until I finished . . . What Schwed has done is capture fully—in deceptively clean language—the lunacy at the heart of the investment business."—From the Foreword by Michael Lewis, Bestselling author of Liar's Poker

This hilarious portrait of everyday Wall Street and its denizens rings as true today as it did when it was first published in 1940. Writing with a rare mixture of wry cynicism and bonhomie reminiscent of Mark Twain and H. L. Mencken, Fred Schwed, Jr., skewers everyone including himself in his brilliant send-ups of bankers, brokers, traders, investors, analysts, and hapless customers.

"How great to have a reissue of a hilarious classic that proves the more things change the more they stay the same. Only the names have been changed to protect the innocent." —Michael Bloomberg President, Bloomberg, LP

". . . one of the funniest books ever written about Wall Street."—Jane Bryant Quinn, The Washington Post

"It's amazing how well Schwed's book is holding up after 55 years. About the only thing that's changed on Wall Street is that computers have replaced pencils and graph paper. Otherwise, the basics are the same. The investor's need to believe somebody is matched by the financial advisor's need to make a nice living. If one of them has to be disappointed, it's bound to be the former."—John Rothchild, Author, A Fool and His Money Financial Columnist, Time magazine

"A delightful classic and reminder of excesses past and how little things change." —Bob Farrell, Senior Vice President, Merrill Lynch ... Read more

Reviews (21)

A Look at Wall Street Excess with Classic Humor
If Will Rogers and Mark Twain got together to write a book on the excesses of Wall Street, the outcome would have been this book. Having stood the test of time and now displayed as an investment classic, this book is a must read for anyone who works in finance.

The author does a great job of humorously outlining the excesses of Wall Street, the classic conflicts between bankers and their clients, and the fickle nature of the market. It is a very quick read with many anecdotes that are relevant to this day.

An Investment Classic All Stock Investors Should Read!
This book clearly deserves more than five stars for exposing the folly of Wall Street in the most humorous possible terms.

This book's fame far exceeds the number of people who have read it. Almost every experienced stock investor will cite examples from the book, without even knowing their source.

The title refers to an ancient story (which the author finds is probably at least 100 years old by now) about a visitor to New York who admired the yachts that the bankers and brokers had in the harbor. Naively, he then asked where the customers' yachts were. Naturally, there were no customers' yachts.

Let me set the stage. The author spent two years on Wall Street in the 20s, but knew it better than that and continued to invest in stocks. He wrote the book in 1940 after the horrible bear years of 1929-1940. The memories of the 1920s were still fresh. Then he updated the book in 1955 in the midst of the 50s bull market with a new introduction in which he explained that the book did not need updating.

Although commissions are no longer fixed, and few spend the day sitting in a broker's office, many of the other observations in the book remain as timely as those in The Madness of Crowds. Human nature doesn't change.

Behind all of the hype about getting rich with stock investments is a sad reality. Over a lifetime, the vast majority of people get poor results from their stock investing. Around 90 percent of professionals will also underperform the market averages over their careers.

But the desire to "outsmart" everyone else is almost universal. Raging bull markets, like the one we had until March 2000 on the NASDAQ, only tend to reinforce these ultimately expensive urges.

I have been around professional investors for over thirty years and all the big scores I remember involving stocks came after someone who was a founder or worked for a company that went public cashed in their stock and stock options after many years of service. These are not stock-investing events, they are entrepreneurial compensation. In the Money Game, Adam Smith pointed that out, and it remains as true today as it was then.

One of the classic stories in this book is about what would happen if 4000 people started flipping coins against each other. You are eliminated from the competition after one loss. Although by definition, half would win and half with lose with each flip, those who had won ten times in a row (as must happen for some in this format) would soon start to give lessons in coin flipping techniques. That story nicely captures the folly of Wall Street. Even though some may win, it usually doesn't mean anything.

The book contains other investment classic stories that you must have in your repertoire. The book is brilliantly illustrated by the classy cartoons of Peter Arno. It is worth acquiring the book just for those.

The subjects covered include Wall Street's passion for prophecy, financiers and seers, customers (or the sheep to be shorn), mutual funds, short sellers, options, speculators and the bull market of the 20s, and the excuses handed out to those who are relieved of their money.

The writing style is urbane and witty. For example, there is the usual disclaimer on not following the advice in the book in the beginning. Except, it is illustrated by two hands with fingers crossed. And, the warnings are a just little different. The information in this book "while not guaranteed by us, has been obtained from sources which have not in the past proved particularly reliable."

The author had discovered that titles cannot be copyrighted, and he "had planned to have my book appear under a good title, The Adventures of Huckleberry Finn."

The author's favorite review of the book contained this phrase, "If I were J.P. Morgan, and I have no reason to suspect that I am not . . . .", and was signed by the author of the review, Mr. Frank Sullivan. The subsequent witty correspondence between them is included in the introduction.

If you are a fan of Louis Rukeyser, you will find the humor here comparable with the badinage on Wall $treet Week during the opening comments.

Seriously, the humor in this book will help you to better understand the risks associated with stock investing. There is a wonderful quiz you can take that will tell whether or not you should be a stock investor. Most will not pass that quiz.

If you still want to own stocks, I suggest that you advance to John Bogle's book, Common Sense About Mutual Funds. It can make you some real money.

If you do not want to own stocks, go instead to Rich Dad, Poor Dad. Follow on to Cash Flow Quadrant.

I also suggest you think about where else folly is taken seriously. This will also put things in perspective for you. My favorite location is the Congress of the United States.

Keep looking for those yachts when you make your investments! To whom do they belong?

Laymen's Fun
Well, maybe this was a 2 star book, but to me it was hopeless from the start. "Fred Schwed", a jokester of a name to begin with talks about Wall St just as naively as anyone who barely knows it.

His viewpoints are clearly from the beginner's point of view, or rather the beginner intermediate- the guy who has just accepted that trading is luck only and that long term investing is simple diversification. He hasn't quite accepted that there are true winners out there and that there is something of an art to the game and eagerly puts any down who attempt to play it. Clearly he has associated with those who are not "in the know" [...]

Anyways, I started at page 1 and read almost to halfway through the whole book before I could bare no more. I really did try to read it through, thinking that I could squeeze something worthwhile out of it. No, I can stand it anymore. I think I'll leave it at the train station on the way to the coffee shop right now! Waste of $[...] and an hour or so of my time..

Definitely not deserving of "Wiley Investment Classic" with the likes of Fisher and LeFevre.

Of the Advantages of Insular Thinking on Wall Street...
This book is very lucidly and wryly written, has sometimes a bit of a cynical objective tone (the author did get burned), but is definitely very humorous, as well as light and agreeable to read. The book is also spiced up by over a dozen of humorous old-fashioned cartoons from Peter Arno.

In essence, this books very entertainingly demonstrates the many advantages of having or gaining an independent critical thinking when facing the follow-the-pack mentality of Wall Street mobbers of all sorts (personally, people in a hurry always made me confused). Indeed, if you hadn't already discovered, the world of finance is probably one of the most implicitly and subtly coercive one there is ...

In these entertaining pages, you will discover that the vast supply of sheer mercantile marketing strategies of Wall Streeters of all sorts are only matched by the benevolent gullibility of a big deal to many Main Streeters. So if you might say there is a certain justice to it after all, you will definitively agree that there is a definite direction as to where the money flows, that is statistically at least... Check out those yachts!

In a broader context, the toll bridge of random walks leading (eventually) to so-called efficient markets does indeed feed on stocks being erratically transferred to and fro at whim, but you can be sure that Wall Street's marketers and intermediaries do have a vested interest in getting their (fair) share out of the (many transaction) deal(s), i.e. the more activity, the better (for them)... But keep in mind that these frictional and parasitic costs are totally non-productive in their ultimate economic end-result, apart from the fact that they provide a liquid (and sometimes efficient) market... a high price to pay for short-term inefficiencies, that also tends to favor a trading instead of an investing mentality...

People's biggest problem seems to be that they just can't sit still (cf. a 17th century author named Pascal...)... But just in case you believe this is another story altogether, let me quote the final words of Fred Schwed's Introduction to the 1955 Bull Market : "[...] my tendency has been to buy stocks, [...]. Then when they show a profit I sell them, exultantly. (But never within six months, of course, I'm no anarchist.) It seems to me at these moments that I have achieved life's loveliest guerdon - making some money without doing any work. Then a long time after it turns out that I should have just bought them, and thereafter I should have just sat on them like a fat, stupid peasant. A peasant, however, who is rich beyond his limited dreams of avarice."

If you are looking for a similar, but more recent, and probably a bit more sophisticated book on insular independent thinking in the face of interested so-called Wall Street and/or corporate professionalism, check out Lawrence Cunningham's fine collection of Essays on Corporate America, also a very worthy and enjoyable read.

To come back to Fred Schwed's book, you will probably enjoy it a great deal, and, 'tell you what, it might even make you richer in what you already have, instead of just making you richer in what you might have, if... to put it otherwise, five hundred dollars and some common sense are often worth much more than ten thousand dollars and the lack thereof, at least in the end result...

Original Motley Fool
"The more things change, the more they stay the same." That's how Fred Schwed, Jr. introduces this gem, if my translation of the French is correct. The book is timely, even though it was first published in 1940. The author shares his observations of Wall Street with wit and humor.

"The chief concern of this book", he states, "will be with an examination of the nonsense ... ." One example is this excerpt from a paragraph he takes out of The Wall Street Journal: "the action of the market was regarded as in the nature of a technical recovery, with little thought of the imminence of dynamic action." Nonsense was apparently well articulated before the bull market of the '90s. Another example is his explanation of why people buy high and sell low when they go to the stock market. They mistakenly believe that once prices are rising (or falling), they'll continue to rise (or fall). "But it is not a fair thing to say of the stock market," he claims,"which, not being a physical thing, is not subject to Newton's laws of propulsion or inertia."

There's more than "an examination of the nonsense" here. Readers may take "A Little Aptitude Test" to see if finance is their calling and consider "A Little Wonderful Advice" on getting rich. If Schwed's advice doesn't make you rich, his hilarious insight will at least make you laugh. ... Read more

Book Description

This cutting-edge financial casebook is divided into four modules: Structuring Projects, Valuing Projects, Managing Project Risk, and Financing Projects. The cases have been carefully selected to reflect actual use of project finance over the past five years in terms of geographic location (the cases come from 15 different countries) and industrial sectors.
* Benjamin Esty, of the Harvard Business School, is one of the leading scholars in project finance.
* Project finance is becoming the financing mechanism of choice for many private firms.
* Cases require the reader to integrate knowledge from multiple disciplines when making a single managerial decision. This integration of functional areas such as strategy, operations, ethics, and human resource management encourages the reader to adopt a more integrative perspective and understanding of the interconnectedness of managerial decision-making. ... Read more

Reviews (1)

Focus on taxes and accounting concepts
I loved this book and it helps me move toward my goal of obtaining my Master's of Accounting. Although some of the concepts are very in depth, you can basically follow the author's direction and what he is trying to say. A great book for Accounting majors. ... Read more

Book Description

This text is written for a one semester course in introductory accounting, generally titled "Financial Accounting," and is written for students who have no prior knowledge of accounting and accounting systems. This text is appropriate for the course where heavy emphasis is on concepts, with some mention of procedures also included. ... Read more

Book Description

The business of investment banking has become intensely competitive. With a growing number of clients who prefer to deal with a single financial advisor for all their capital needs, firms must now engage in all major capital-market activities in order to meet this demand. Rapid advances in information technology have closely linked the international capital markets and, as a result, major securities firms have gone global to better serve their clients. To fully understand this changing environment and remain players in the game, new and seasoned professionals alike will require detailed, in-depth information on a broad scope of banking operations.

The Business of Investment Banking is a complete guide to the major banking activities in today's global marketplace. This convenient, one-volume reference identifies and analyzes key trends worldwide, allowing banking and finance professionals to effectively manage deals and incorporate trends into operations. In The Business of Investment Banking, Professor K. Thomas Liaw goes beyond traditional banking topics and includes extensive coverage of rarely discussed subjects that are integral to investment banking, such as emerging markets, proprietary trading, repurchase transactions, operations, money management, and how foreign firms list on Wall Street.

Beginning with an overview, covering everything from underwriting to M&As to global presence, Liaw provides a thorough and rigorous analysis of the current market practices in all relevant business segments. He presents an investment banker's perspective on the current environment, with a detailed description of the strategic decision-making process that is crucial to successfully managing the investment bank.

This thorough guide is divided into four main sections:

• Basic Business—explores venture capital investment, mergers and acquisitions, underwriting, and asset securitization
• Global Perspective—detailed information about foreign listing on Wall Street, international capital markets, and emerging markets
• Trading and Risk Management—extensive data on proprietary trading, repurchase agreements, financial engineering, and money management
• Special Topics—discusses clearing and settlement, securities regulation, ethics, major trends, and Section 20 subsidiaries

Comprehensive, unparalleled coverage of a wide range of topics makes The Business of Investment Banking an invaluable, one-stop resource for all practicing investment banking professionals and for graduate students interested in a career in capital markets. ... Read more

Reviews (15)

Good introduction, but no details
This is an excellent book for anyone wondering what Investment Banking is all about, but who doesn't want to learn how to price a company. It describes in sufficient detail, for the reader to understand, the concepts underlying Investment Banking and what they really do in the Investment Banking world as well as explaining in easy (relatively) terms the jargon that is used in the business.

If you want the theoretical underpinnings of the financial world, this book is not for you. If, on the other hand, you're an aspiring Investment Banker that wants to know what it is all abour or if you're just curious about what the Investment Banking business is about: buy this book as a primer/introduction and if you find it interesting, search for a more theoretical book.

Fantastic, easy to understand overview of the business...
This book is very well written and very easy to understand. It touches on most of the various aspects of the business without over-focusing or under-focusing on any particular area. A definate business school quality textbook, or an excellent reference source. Real life examples are given to further your hands-on understanding. I emailed the author, and my email was quickly responded to in a very friendly manner. I highly recommend this book for anyone wanting to learn the business of investment banking.

good overview but expensive
This book is a good overview of the investment banking business, but it is quite expensive. I would strongly recommend instead or in addition the Vault Career Guide to Investment Banking.... The Vault guide includes more detailed overviews of all the departments and functions of an investment bank including corporate finance, M&A, sales, trading, private client services, credit, etc. If you are a job seeker in investment banking also try the Vault Guide to Finance Interviews, which contains actual investment banking finance interview questions and answers and which I found to be enormously valuable in my Wall Street job search.

Highly Recommended!
What exactly do the Masters of the Universe do between weekends at their Hamptons estates? While most of us have a vague idea of what investment banking is, businesspeople need a clear understanding of what goes on behind the Wall Street curtain. This book pulls that curtain aside with a systematic explanation of the businesses, strategies and tools of the major investment banks. Parental advisory: The book features a technically complex subject being addressed by a professor in finance. Some colorful anecdotes or engaging examples might have lightened the mood, but this isn't exactly Oprah territory here, and we [...] heartily recommend this solid book. Writing with expertise, Thomas Liaw breaks down the current business of investment banking and examines the changes that are blending the profession with commercial banking and insurance, a process that could reduce the Masters to mere mortal servants of global financial services supermarkets.

Disappointing and Inaccurate
My biggest problem with this book is that it contains much misleading information on investment banking -- particularly with respect to securities law. As a former corporate and securities attorney and now investment banker, I found that at many points Liaw was at best half right and at worst completely wrong with respect to some of the finer points of the financing process. The book also contains numerous grammatical mistakes that are extremely distracting. (I would have expected more from John Wiley & Sons. Next time please hire a proofreader!) Is that too much to ask for an $80 book? In fairness, I did not get past the first 3 chapters of the book so perhaps the book gets much better later on, but I sincerely doubt it. In short, this book is not worth the money. ... Read more

Book Description

A practical, introductory guide to the fundamentals of not-for-profit accounting

Not-for-Profit Accounting Made Easy focuses on accounting fundamentals for those who run financial and accounting operations in not-for-profit organizations but do not have a professional understanding of accounting principles and financial reporting. It explains complex accounting rules in terms nonaccountants can easily understand in order to help them better fulfill their managerial and fiduciary duties. Always practical and never overtechnical, this helpful guide conforms to FASB and AICPA standards and:

• Shows how to read and understand a not-for-profit financial statement
• Explains financial accounting and reporting standards
• Helps managers and other nonaccountants become conversant in the rules and principles of accounting
• Updates board members, executive directors, and other senior managers on the accounting basics they should know for day-to-day operations
• Features tables, exhibits, and charts that illustrate the content in a simple and easy-to-understand manner

Suitable for fundraising managers and executives–as well as anyone who needs to read and understand a not-for-profit financial statement–this is the ultimate not-an-accountant’s guide to not-for-profit accounting. ... Read more

Reviews (3)

Accounting Made Difficult
If you are looking for a straightforward, easy-to-read explanation of not-for-profit accounting, keep looking. I ordered this book recently and while the first chapter provides some useful defintions, the rest of the book is mind-numbing. In fact, I gave up after chapter 3. If you have to re-read paragraphs two and three times to understand what the author is trying to say, then it's not "accounting made easy."

In addition, the examples of financial statements only offer "XXX" rather than actual numbers. Samples with actual numbers would have been much more useful.

Charity Channel (www.charitychannel.com) also gave this book a negative review.

There are better guides out there.

Very good, but not quite "easy"
This book is exactly what I (as a newly-minted board member) needed to help me figure out some of the oddities and kinks in nonprofit financial reports. Information is presented clearly and logically.

Only two little problems kept me from awarding five stars.

1. If you have no accounting background at all, you may find it difficult to make sense of some parts of the book. At several points, a general familiarity with accounting concepts and terms is assumed. I had taken an introductory accounting class a few years ago at a community college, and with that background, had no trouble at all with the book. I suspect that if I'd read this book before taking that class, I would have given up in hopeless confusion after the first chapter. Be warned.

2. The book contains examples of financial reports. That's good. Unfortunately, it shows all the dollar amounts as "$XXXX.XX" or similar. That's bad. It would have been much better to construct an example with actual numbers, so the reader could see which numbers flowed where.

If you know even a little bit about accounting, and you are involved with the finances of a nonprofit organization (staff, board, major donor), this is a valuable resource.

Comprehensive and Easy to Understand!
I work at a not-for-profit organization and always found the books in this field too technical. This is the first book I found that covers all of the essential information I need to know about non-profits but in a clear and easy-to-ready format. It has greatly enhanced my understanding of the field. An excellent book for anyone connected to a non-profit organization. ... Read more

Book Description

"Richard Flavell has a long association with the swap market from an academic and practitioner's point of view. Swaps and Other Derivatives is a compendium of practical information on the valuation, pricing, trading and structuring of swaps. It will fulfill an important role as a reference source for the market." Satyajit Das

Swaps and Other Derivatives is designed for financial professionals to understand, and ultimately to do themselves, how the vast bulk of OTC derivatives are used, structured, priced and hedged. Adopting a practical flavour throughout, the book describes how the pricing, valuation and risk management of generic OTC derivatives may be performed, in sufficient detail and with various alternatives, so that the approaches may be applied in practice. The book is supported by a full range of detailed spreadsheet models, which underpin all the tables, graphs and figures in the main text.

Swaps and Other Derivatives is ideal for risk managers, traders, financial engineers, product controllers and other professionals involved in the construction and management of OTC derivatives. In addition, it should be of interest to those involved in internal audit, risk control and IT within financial institutions. End users such as fund managers and corporate treasurers who use derivatives to manager their risk profiles should also find it of value. ... Read more

Reviews (3)

an excellent book for pricing swaps
give clear excel examples on how to implement swap calculation.

Excellent field guide
This is definitely the best book in the market for Swaps and related derivatives. The level of detail is extraordinary in comparision with other available books. Leaves very little gaps which means it is easy to apply the knowledge in practical situations.

Most books lean either towards the technical/quantitative side or the financial business side. Richard Flavell's books is a much-needed well rounded book on the issue. Definitely a much better book than Satyajit Das/Fabozzi books.

I wish Richard Flavell would write more. If you're buying one book on Swaps and related OTC derivatives, its got to be this one!

Flavell's book find the right balance
Whilst I have only read the first 100 pages or so of Favell's book so far, my impression is very favourable. This is simply an excellent book that finds the perfect middle ground between academic texts and introductory works, both of which usually leave out practical market issues such as day count conventions, business day adjustments, rounding rules, interpolation concerns, available market data etc

As a quant working for financial software company finding the detailed information required to write documentation to drive software development is often difficult. This book supplies the level of detail needed, and also contains excellent descriptions of different pricing methodologies for interest rate swaps.

Later chatpers on risk management and pricing of other derivatives look equally impressive, and I look forward to reading them.

This is the best book on swaps that I seen so far; a definite improvement on Das in my opinion. ... Read more

Book Description

In addition to the solid estimating data this manual has provided for years, this new edition is expanded and updated to include installation of pneumatic mechanical instrumentation, which is used in monitoring various process systems. ... Read more

Book Description

"The one, only, and by far the best book synthesizing psychology and investing. In addition to providing modern, scientific knowledge about psychology, this book provides a mirror into the mind and wide breadth of knowledge of one of the leading practitioners of brief and effectual cures. Will help to cure your trading and your life."
–Victor Niederhoffer, Chief Speculator, Manchester Investments
Author, The Education of a Speculator and Practical Speculation

"How refreshing! A book that rises above the old NLP model of the 80’s and provides insights on how our relationship with the market is indeed a very personal one. Not only has Steenbarger provided some fantastic tools for the trader to transform his mindset, but he has contributed unique trading ideas as well. Brilliant!"
–Linda Raschke, President, LBRGroup, Inc.

"‘Investigate, before you invest’ was for many years the slogan of the New York Stock Exchange. I always thought a better one would be, ‘Investigate YOURSELF, before you invest.’ The Psychology of Trading should help you increase your annual investment rate of return. Mandatory reading for anyone intending to earn a livelihood through trading. "
–Yale Hirsch, The Hirsch Organization Inc., Editor, The Stock Trader’s Almanac

"This highly readable, highly educational, and highly entertaining book will teach you as much about yourself as about trading. It’s Oliver Sacks meets Mr. Market–extraordinary tales of ordinary professionals and individuals with investment disorders, and how they successfully overcame them. It is a must-read both for private investors who have been shell-shocked in the bear market and want to learn how to start again, as well as for pros who seek an extra edge from extra inner knowledge. Steenbarger’s personal voyage into the mind of the market is destined to become a classic."
–Jon Markman, Managing Editor, CNBC on MSN Money
Author, Online Investing and Swing Trading

"Dr. Steenbarger’s fascinating, highly readable blend of practical insights from his dual careers as a brilliant psychologist and trader will benefit every investor; knowing oneself is as important as knowing the market."
–Laurel Kenner, CNBC.com Columnist, Author, Practical Speculation ... Read more

Reviews (18)

This book is the Ultimate Treatise on Trading Psychology
Words cannot put to justice the astonishingly accurate, profoundly well-researched and lucidly written work of Dr. Brett. Using his real life clients as models The Good Dr. takes us on a journey through previously unchartered regions of the human psyche with painstaking detail. This book and the references contained in it set me on a path to self-discovery that I shall never backtrack on. I now see things with an awareness beyond which I ever thought I could attain.

It is really amazing as to how many people are sitting behind trading stations without the slightest clue as to the fiendish psychological challenges that trading presents to a human mind which is hard-wired to protect its ego at any and all costs. For those that are not brought up in an idyllic homestead with angels nursing their every psychopathological ailments trading is simply not somewhere to search for affluence and prosperity. As this applies to virtually everyone, those that intend to make money consistently must devote themselves to cultivating a superior level of self-understanding. Aspiring students of the markets must also increase their thresholds of pain exponentially since frustration & damper are the order of the day in this industry, at least initially.

The profitable trader must wield acute awareness, understanding of the underlying mechanism of the human brain and develop levels of self-discipline akin to the mythical Odysseus because the sirens of the market can be just as deadly. Dr Brett shows you step by step how the markets are relentless at exposing every one of our own individual emotional weaknesses, ferreting out every chink in our armor.Plentiful "screentime" and an objective mindset are the factors that go into the creation of a successful market player. Persistence without a doubt is the penultimate for it is their own painful battle scars that bring priceless wisdom to accomplished speculators.

This book should be on the shelf of anyone trying finish in the black on a consistent basis regardless of their level of sophistication. Thank you Dr. Brett for changing my life.

Trader: Know Thyself
An outstanding book for traders of all levels, even experienced traders will undoubtedly recognize some of their more subtle trading Achilles heels, and all of us have them.

If you're a system follower, you need this book. If you're a discretionary trader, you need this book. If you throw darts at the financial pages to choose your trades, you need this book (actually, in that case, you'd better get out of the markets altogether).

A lot has been written elsewhere, of course, on trading psychology, but Dr. Steenbarger, who apparently develops trading systems and trades actively himself -- so he puts his money where his mouth is -- shows how to integrate the quantitative and qualitative (i.e., human) elements into a coherent trading framework.

My trading results are up tremendously since I purchased this book, even though the market has been moving sideways the past few months. Thanks Dr. S!

Not bad, but not necessary
First, let me start by saying this book will not teach you how to trade (though you could probably see that from the title). I think the book is way longer than it needs to be. The author talks about many counceling events with clients in his life (most are non-trading related) and then tries to draw a parallel with them to trading. When he finally gets to his point about actual trading psychology, he has good things to say. But I think he could have said everything in one chapter. Nonetheless, I found that I was able to relate to many of the behaviors he discusses. I didn't feel like he really gave great help in trying to break the bad behavior, but at least being able to relate to it makes you think about it and pay attention when you are falling into it while trading. There are many other trading books I would probably read before this one. But if you're sick of all of the technical books that try to teach you how to trade, this book might be worth a read. It's actually one trading book that you could take on vacation with you.

Well researched and written, but not for the mass
The author's M.D. counsellor-trader identity did help him making this an uncommon trading psychology book full of "highly trading relevant" counselling records from both trader and non trader patients. The catch is: if you are not interested in or equipped with an intermediate level of knowledge about psychology or counselling, I doubt very much whether you can finish reading this 300 page book till its end.

To let you have a better grasp of my "worry" mentioned above, I would like to quote something from the last or conclusion chapter, which the author regarded them as 11 of the major themes explored in his book.

1. Behavior is patterned.
2. Your trading patterns reflect your emotion patterns.
3. Change begins with self observation
4. Problem patterns tend to be anchored to particular states. (When you enter a particular state thru emotional, physical, or cognitive activity, you tend to activate the behavioral patterns associated with that state.)
5. Our normal states of mind, which define most of our daily experience, lie within a restricted range of our possibilities. (Your immersion in daily routine keeps you locked in routine mind states)
6. Most trading occurs in a limited range of states, trapping traders in problem patterns. (Traders tend to place greater emphasis on the data they process than on the ways in which they process those data.)
7. People in general, and traders specifically, enact solutions as well as problem patterns.
8. Eliminating emotions is not necessarily the secret to improving trading. (Traders can utilize positive emotional experiences to identify constructive solution patterns and to create an anchoring of new, positive patterns.)
9. Success in the markets often comes from doing what doesnt come naturally.
10. The intensity and the repetition of change efforts are directly responsible for their utlimate success.
11. Trading success is a function of possessing a statistical edge in the markets and being able to exploit this edge with regularity.

In short, if you can appreciate or at least have a slight idea of what the above 11 points try to preach, this book suits you well. Otherwise, please give it a pass.

Don't let these reviewers fool you
In case you didn't notice, these other reviews are from the author circuit. I believe the practice is called log rolling. You review mine, I'll review yours - what a cozy little circle j***. Are any of them successful traders? Apparently not. Part-time prognosticators who have something to sell. Don't think that some nitwit psychologist can help you with your trading. Successful traders come in all shapes and sizes, and no amount of counseling is going to help you. ... Read more

Book Description

This market-leading Payroll Accounting text/workbook illustrates the calculation of payroll, payroll taxes, and the preparation of records and reports that form the foundation of a payroll system. ... Read more

Book Description

Named by Inc. and Forbes magazines as one of the top ten essential books for small business, this fully revised and updated fourth edition of The Successful Business Plan: Secrets & Strategies is a complete, step-by-step guide to researching and writing a fool-proof, perfectly formatted, knock-'em-dead business plan.

Required reading at America's top business schools, it's been called "the entrepreneur's bible," having helped hundreds of thousands of successful business people get the funding they need to launch their businesses.

With a foreword by legendary venture capitalist Eugene Kleiner, The Successful Business Plan is packed with insider tips and insightful advice on writing and formatting a business plan that will stand out from the crowd.

Book features:

99 worksheets to help you get started quickly, taking you through every critical section of a successful business plan

Sample business plan offering guidance on length, style, formatting and language

The Abrams Method of Flow-Through Financials, which makes easy work of number crunching — even if you're a numbers novice

Special chapters addressing issues of concern for service, manufacturing, retail, and Internet companies

Added help for teams and students preparing business plans for classes or competitions

Nearly 200 real-life insider secrets from top venture capitalists and successful CEOs – learn what truly impresses funders

New chapter on starting a business in a challenging economy ... Read more

Reviews (21)

The new 4th edition is outstanding.
This is simply the best business planning guide on the market. I teach entrepreneurship classes and have used prior editions in my classes, but I'm really impressed with this new edition and how it reflects the realities of business planning in the post-dot-com era. There's a new chapter on seeking funding in a recession, which is the most frequent question I'm asked by my students now.

The other thing I like about the new edition is the Excel templates for generating the business plan's financials. They work exactly like the worksheets in the book, which lessens the learning curve. BUT, you have to buy the templates separately from the publisher's website.

All in all, a great update to an already excellent book. Highly recommended.

Good starting point and reference
I have probably purchased 5 business plan books over the last year. I have also purchased a couple of business plan software programs (both unsatisfactory). None can be considered a definitive "best" book or resource. Each one has strengths and weaknesses, and anyone searching for a drop-in guide should re-think their goals. Abrams book, on the whole, is certainly one of the better business plan books. The advise and focus of the content are very salient to anyone out there looking for OPM.

Great for someone with little accounting experience!
I was so scared of writing a business plan that I put it off for as long as I could (nearly a year!). But my potential investor made it clear that I would have to bite the bullet. I owe Abrams a huge "thank-you" for making the business plan writing process something that could be done thoroughly, efficiently, and done well--and didn't take me too long at all. But the best part is that you can download finacial spreadsheet templates from the publisher's website!!

I am the kind of person who has an idea and just wants to run with it; I have a hard time figuring out specifics and financial realities. Between the book (which explained exactly what I needed to know about target markets, competition, cost-benefit analysis and the like) and the downloadable spreadsheets (which did all of the math, and carried the numbers through to all of the projection sheets and balance sheets and income statements and such, and took care of all of the formatting--just print and go!), I was able to write a top-notch, professional-looking business plan (if I do say so myself!) to present to my potential investor, and to the bank when I go to apply for a loan! And I won't feel embarassed by my lack of experience--at least, my business plan won't convey it. Plus, it's really important to go through the process of writing a business plan (and Abrams addresses this in the book) so you can really get a good, clear, structured idea of what you're doing, how you need to do it, and why you're starting a business in the first place.

Best business plan book out there
I was assigned this book for an Exec.MBA class, and it's one I'm going to keep after I sell a lot of my other books back. I've had to do business plans for the corporation I work for and for a friend's business, and I've looked at tons of books, and this is just the best one out there. If you go to the publishers website you can also get Excel templates so filling out the financial forms is straightforward and they're also best-of-breed. This is the book to use if you want to impress a boss, professor, or investor.

Not as helpful as I had hoped....
I did not find this book as helpful as I was hoping. First, and most importantly, I needed more examples. There was only one and it was a service organization and I needed to see an example of a manufacturing organization where the target customer was not so geographically limited. Also, I found that the way the book is organized was difficult. I felt the book was more oriented toward helping someone sort out their thoughts and feelings about starting a business than it was focused on actually structuring and writing a business plan. What I actually need are the hard, factual mechanics of writing a business plan and I did not find it to my satisfaction in this book. ... Read more

Book Description

Clear. Accurate. Current. The new twelfth edition of Financial and Managerial Accounting: A Basis for Business Decisions unites this texts long-running standard of excellence with a thorough revision reflecting contemporary concepts and issues in accounting. The managerial accounting section has been expanded making this book appropriate for the 50/50 split accounting principles courses that employ a corporate approach. The hallmarks of this text continue to be exceptional balance between the preparer and user points of view, excellent real-world examples that do not distract students from the text narrative, and clear writing style. This is a reflection of the authors and their well-known dedication to accounting education. ... Read more

Book Description

This introduction to accounting and its significant role in making sound business decisions teaches readers how to be wise users, not necessarily preparers of accounting information—a strong user-based approach that is endorsed and supported by the AECC. The authors present accounting information in a broader business context-emphasizing what accounting information is, why it is important, and how it is used to make strategic economic decisions—coverage of financial and management accounting included. Specific chapter topics discuss business in the United States, economic decision making, the balance sheet, income statement and statement of owners' equity, accumulating accounting data, challenging issues under accrual accounting, financial statement analysis, the future of management accounting, classifying costs, determining costs of products, business decisions using cost behavior, making decisions using relevant information. evaluating capital expenditures, the operating budget, standard costing, and evaluating performance. For individuals with a future, career and interest in accounting.

Reviews (1)

A Great book with broad Perspects
This introduction to accounting and its significant role in making sound business decisions trains readers in becoming wise users. The authors present accounting information in a broader business context-emphasizingwhat accounting information is, why it is important, and how it is used tomake strategic economic decisions-but still include traditionaldebit/credit information as optional coverage. A great book for practicingoffice professionals, accounting clerks and paraprofessionals, and staffaccountants. ... Read more

Book Description

Intermediate Accounting is the bestselling book that has powered the careers of countless professionals. This new edition builds on the book's reputation for comprehensiveness, accuracy, and currency, incorporating all the recent changes to the accounting literature. Updated with the latest developments and standards in the field. The book includes a CD-ROM with an accounting cycle tutorial, a financial statement analysis primer, an annual report database, spreadsheet tools, career resources, and more. It will help readers develop the knowledge- and skills-base they need to succeed as professional accountants. ... Read more

Reviews (2)

Just ok.
This study guide is just ok. There are a lot of typographical errors which sometimes make it difficult to follow the solution. Be wary of this book =P

The end of a long search !
Iam an Asian-Indian,who came to the United States recently.Iam a B.Com graduate and M.B.A specialising in Finance.After years of specialising in Accounting and Finance in the British system,I was totally lost when I cameto the US ,when I tried to improve my qualifications to an American C.P.A.I needed to go through and practice problems in the American system ofaccounting. I was wandering aimlessly and without any help into thewebsites selling books trying to match the ones that meet my requirementsfor a CPA exam.Finally I approached a friend at work who was formerlyteaching at a local school.She recommended"Self study problems andsolutions to accompany Intermediate accounting" by Keiso andWeygandt.

I bought both the volumes of that book,It is a great book forself study. It starts with the very basics of introducing the conceptualframework of accounting and basic chapters like Recivablesaccounting,Cashflows,inventory accounting,Accounting for assets and currentliabilities in its 1st Volume to more complex chapters like retainedearnings,accounting for income taxes and for Retirement benefits in the 2ndVolume.

It was of immense help to me not only to brush up my fundamentalconcepts but also to work out several problems and compare them with thesolutions provided and to make myself stong in intermediate accounting.Thanks to Keiso and Wegandt, I can now sit for my exam with confidence. Iwould highly recommend this book to all intermediate students and tostudents from other countries such as myself. ... Read more

Book Description

Applied Equity Analysis treats stock valuation as a practical, hands-on tool rather than a vague, theoretical exercise—and covers the entire valuation process from financial statement analysis through the final investment recommendation. Its integrated approach to valuation builds viable connections between a firm’s competitive situation and the ultimate behavior of its common stock. Techniques explained include EVA, newer hybrid valuation techniques, and relative multiple analysis. ... Read more

Reviews (3)

Probably the best
I've been looking for a practical step by step book on equity analysis from a practitioners viewpoint. This is it. Other books try to take shortcuts. This book does not take short-cuts, but neither is it bogged down with unncessary academic exercises. If you really want to understand how to do valuation and applied equity analysis I can't recommend any book more highly. It is head and shoulders above anything else out there. Penman's book (from Columbia Business School) is also good but it is a VERY serious and weighty book that probably should only be attacked after you have read this one. Get this book by English and you will not be sorry. I have spent way too much time reading hundreds of other books that weren't nearly as educational. Again, however, it is only for the serious investor.

Very readable, very insightful, and extremely practical
James English's "Applied Equity Analysis" is a how-to manual on evaluating stocks based on his 20 years of experience at JP Morgan. The book is very well-written and readable since the author employs plain english (no pun intended) to make his three major points: 1) accounting numbers--while by no means perfect--are excellent tools in evaluating stocks, 2) accounting-based stock valuation is superior to (but does not neccessarily supplant) cash flows, and 3) competition ensures that eye-popping financial performance doesn't last forever.

Contrary to another reviewer, English employs excellent examples to clarify and explain his points. Some examples: Gateway 2000's earnings history was used to explain how to find and interpret non-recurring items (NRI) on financial statements. Ratio analysis was demonstrated by looking at the PC industry in 1998. Emerson Electric was the company chosen to show why mature companies were still good buys. Many other examples abound, and English does a successful job in tying their relevance to his arguements.

But successful use of examples is not just the only strength of the book. The author also tackles a range of topics complete with insightful and clear discussions: the flaws of the Efficient Market Hypothesis (EMH), Economic Value Added (EVA), financial statement analysis, fundamental analysis, etc.

A quick glance at the table of contents below gives you an idea of the scope of English's book. I highly recommend this book to not just Wall Street analysts, anyone who is interested in finding fundamental value in evaluating stocks instead of following the crowd.

Pt. 1 Getting Started
Ch. 1 A Day in the Life
Ch. 2 Fundamentals of Equity Valuation
Ch. 3 Strategy and Competition I: The Firm's External Environment
Ch. 4 Strategy and Competition II: The Firm's Internal Competitive Resources
Ch. 5 Fundamentals of Stock Behavior
Pt. 2 The Basic Tools
Ch. 6 Reading a Financial Statement: The Accuracy, Sustainability, and Predictability of Financial Information
Appendix 6-1 Gateway Financial Statements
Ch. 7 Reading a Financial Statement: the Composition of Returns
Appendix 7-1 Comparative Financial Analysis: Personal Computer Industry
Ch. 8 Reading a Financial Statement: Early-Stage Companies and Investment Capacity
Ch. 9 Reading a Financial Statement: Later-Stage Companies and the Transition to Maturity
Ch. 10 Economic Value Added: An Alternative to Traditional Analysis Techniques
Appendix 10-1 Gateway's Cost of Capital
Pt. 3 Financial Models
Ch. 11 Financial Modeling: Base Case Assumptions and Model Design
Appendix 11-1 Dell Computer Corporation Consolidated Statement of Income
Ch. 12 Financial Modeling: The Income Statement and Balance Sheet
Ch. 13 Financial Modeling: The Statement of Cash Flows
Pt. 4 Equity Valuation
Ch. 14 Valuation: Foundations and Fundamentals
Ch. 15 Combat Finance: Relative Methods and Companion Variable Models
Ch. 16 Hybrid Valuation Techniques
Ch. 17 The Quirky Price/Earnings Ratio
Ch. 18 Valuation of Speculative Stocks
Ch. 19 Equity Analysis and Business Combinations
Pt. 5 Getting It Down on Paper
Ch. 20 Financial Writing: Don't Bury the Lead
Bibliography
Index

too academic
I think the book's treatment of valuation is too academic. The author should use more practical examples. ... Read more

Book Description

• Teaches both the accounting concepts and software techniques needed to effectively handle financial and accounting needs for any small business
• Provides thorough coverage of establishing a business, handling payroll, printing checks, running financial reports, dealing with the IRS, and customizing sales reports
• Explores tax penalties, data management and security, sales recording, inventory, time tracking, expense reporting, and business performance analysis
• QuickBooks has an estimated installed base of more than four million users, and is the bestselling business financial software on the market

Reviews (5)

Jonathan Fritz, Business and Entrepreneurial Attorney
A cogent resource for easily and thoroughly navigating QuickBooks.The author provides a comprehensive source enabling all business professionals to utilize QuickBooks for maximum business advantage.Highly recommended, its on my desk and should be on yours.

Invaluable Resource
An invaluable resource for any business who
uses Quick Books.Concise, well-organized and complete
QuickBooks 2005 Bible is a resource we are already putting to great use in our business.

Excellent Reference Manual
As a tax attorney, I highly recommend this book to anyone who has the QuickBooks program.Don't log on without it!You will save yourself considerable time with this easy-to-use guide.

Pefect reference
Makes doing my books a lot easier and faster.Good index, great visuals, clear steps. Backgound information on taxes and accounting also very helpful

Quick, concise reference
Makes QuickBooks much easier to use.This book gives me all the right answers at the right time. ... Read more