Book Description

The increased volatility of interest rates during recent years and the corresponding introduction of a variety of interest rate derivative securities like bond options, futures and embedded options in mortgages, stress the need for a comprehensive financial theory to determine values of fixed income instruments and derivative securities consistently.

This book provides: a detailed overview and classification of the different approaches to value interest rate dependent securities; a comparison of the numerical approaches to value complex securities; andan empirical examination for the Dutch Fixed Income Market of some well-known interest rate models which demonstrates recent improvements to describe interest rate movements in relation to contingent claim valuation. ... Read more

Book Description

The timeless edition of Security Analysis that most closely reflects today's financial environment

Graham and Dodd's Security Analysis is hands-down the most influential investment book in history. The classic 1951 edition is the first edition of the bestselling investment bible that was written during a time of

economic stability and prosperity. It provides investors with techniques and strategies for profitable investing in an economic environment that most resembles today.

Security Analysis: The Classic 1951 Edition features a far more contemporary focus on the wisdom and legitimacy of common stocks for individual investors. This essential addition to any investment library features:

• Graham and Dodd's original words and insights, unvarnished and still compelling
• Timeless methods for measuring asset values and cash flows, still a centerpiece of value investing worldwide
• Income statements and balance sheets moved to the front of the book for ease of use

Book Description

THE NATIONAL BESTSELLING BOOK THAT EVERY INVESTOR SHOULD OWN

Peter Lynch is America's number-one money manager. His mantra: Average investors can become experts in their own field and can pick winning stocks as effectively as Wall Street professionals by doing just a little research.

Now, in a new introduction written specifically for this edition of One Up on Wall Street, Lynch gives his take on the incredible rise of Internet stocks, as well as a list of twenty winning companies of high-tech '90s. That many of these winners are low-tech supports his thesis that amateur investors can continue to reap exceptional rewards from mundane, easy-to-understand companies they encounter in their daily lives.

Investment opportunities abound for the layperson, Lynch says. By simply observing business developments and taking notice of your immediate world -- from the mall to the workplace -- you can discover potentially successful companies before professional analysts do. This jump on the experts is what produces "tenbaggers," the stocks that appreciate tenfold or more and turn an average stock portfolio into a star performer.

The former star manager of Fidelity's multibillion-dollar Magellan Fund, Lynch reveals how he achieved his spectacular record. Writing with John Rothchild, Lynch offers easy-to-follow directions for sorting out the long shots from the no shots by reviewing a company's financial statements and by identifying which numbers really count. He explains how to stalk tenbaggers and lays out the guidelines for investing in cyclical, turnaround, and fast-growing companies.

Lynch promises that if you ignore the ups and downs of the market and the endless speculation about interest rates, in the long term (anywhere from five to fifteen years) your portfolio will reward you. This advice has proved to be timeless and has made One Up on Wall Street a number-one bestseller. And now this classic is as valuable in the new millennium as ever. ... Read more

Reviews (102)

Be smart and BUY this book!
This is the first book I ever read on investing. My cousin, Paul, who was a broker at Merrill Lynch, recommended it to me. I followed Paul into the financial services industry, toiling 12 long years peddling stocks, bonds, mutual funds and insurance products. During my tenure as a Wall Street professional (I use that term very loosely), I must have read 200 different books on investing. Oddly enough, I have discarded many of those poorly written investor guides and still refer back to this classic book penned by Peter Lynch, mutual fund demigod, investment guru, stock-picking legend!

At the heart of Lynch's case is that each individual has enough inherent knowledge and experience to be a successful investor. He uses numerous analogies to show investors:

1. The power of common knowledge (take advantage of what you already know) 2. You don't need to be a Wall Street analyst to uncover great investment opportunities 3. You are not disadvantaged vs. large, institutional investors You don't have to accurately predict the stock market to make money in stocks 4. To keep an open mind to new ideas

From my years on Wall Street, I found many of his theories and ideas to be completely accurate. Many other books I have read focus on the inherent evils of the possessed financial consultant community. Yes, the industry has its problems. However, $8 stock trades are not the only ingredients in profitable investing. In fact, I don't recall him emphasizing the need for discount trades, a fact over-emphasized in almost every other book I have read (remember, I am no longer in the industry...I don't need to strike a case for broker commissions). Instead, he shows you what information to focus on and how to apply it.

Do yourself a favor: Buy this book. Read it twice. It is not outdated...it is timeless. Yea, I know, you already know it all. My advice is to lose the ego and take a refresher course on common sense investing. When you finish, put it on your bookshelf. Do not give it to your kids or neighbors; buy them their own copies. This is a great book!

A Capital Read!
I borrowed my copy of "One Up On Wall Street" from a friend who is a longtime professional equities investor. He received this gift as recommended reading from a veteran investment analyst he knows. While Peter Lynch has written an easily comprehendible advice book on common stock investing - very much written in layman's terms and without emphasis on industry jargon - the principles he puts forth are fundamental and worth reviewing by anyone, amateur or pro.

Within the 300 pages of this book, Lynch outlines a useful rubric against which all stock selections might be measured. His stocks fall into six categories: Slow Growers, Stalwarts, Cyclicals, Fast Growers, Turnarounds and Asset Plays. Screening, buying and selling advice are outlined for each of these six flavors, although nothing revolutionary (eg., Sell a slow grower when the dividend is unattractive.) He delivers a wealth of the basic analytical tools (well, more like rules of thumb) for stock research, explaining price earnings ratios, the import of tax loss carry-forwards, goodwill accounting, inventories, and other basics of P&L statements and Balance Sheets. It's a pocket guide financial course for those who may have slept through Accounting 101.

Lynch urges stock pickers to do their homework, and suggests the regimen of a "Two Minute" drill, whereby an investor can recite a brief monologue of reasons for selecting a security: Reasons for selection, what the company needs to do to succeed, and pitfalls that stand in the way. Obviously, this is not a book for the technicians or chartists. Nor even speculators, as Lynch reminds the reader that his "ten-baggers" or "forty-baggers" all come as a result of having held at least three to four years.

Quite a bit of the book carries a populist bent. There is plenty of advice to pay more heed to what's happening in the local shopping mall than to investment brokers ("oxymorons"), and to avoid stocks with exotic names or that may have been whispered to be hot. Of course, we've all been aware of this, and we're all wealthy and drinking daiquiris on the beach now, right?

In sum, it is worth the investment of the few hours it takes to swallow this information. At worst, it is an entertaining look at some high-fliers the former Magellan manager scored with, but at the very least it serves as reminder that basics need to be followed, and nothing works as well as solid research, good discipline and old fashioned hard work.

For financial analysts to be!
I first read this book as an "assignment" when I started working as a financial analyst in 2000. The book is well written, and offers a lot of insights and tips that are applicable to analyzing companies and stocks. Most of the stuff here are very applicable to my work, and even offers examples that can be emulated by any investor/analyst. To date, I still practice most of the philosophies and tips suggested here when it comes to analyzing companies. Amazingly, the book is not written in financial jargon but rather in a simple way that even novices would easily understand. i rate this book a "buy!"

Probably the best stock investment book ever
This is a terrific book for stock investors of all levels, beginner through advanced. Lynch has tremendous credibility, as an extremely successful long-term mutual fund manager. And he shares a good deal of his investment knowledge with readers in this book. The author shows why stocks have been better than cash or bonds in the long run, and covers the basics of valuation: PE ratios, earnings growth, brand value, financial/cash position, etc. Then he points out that each individual investor brings their own "edge" to the investment table, such as that a truck driver might notice that he's delivering more for a growing business before "The Street" realizes that the business is growing, or a retail sales clerk might have a better handle on what's selling than a Wall Streeter in New York City, etc (this "edge" is the "One Up" part, referenced in the book's title).

I read this book before I got serious about investing myself, it's helped me to be successful (I've "beaten the street" fairly consistently, much of this thanks to Lynch's book) and I've re-read it several times over the years. My biggest problem with this book is the printing; while the quality isn't terrible, it could be a lot better, a lot more readable. This is a book just CRYING to be published again in hardback, with new, larger typesetting. And I don't mean that little miniature abridged hardback version. Considering the popularity of this book, and the great number of well-to-do investors, why not sell us a leather bound, acid free paper, nicely typeset version for $50-$75 retail? Until that ever happens (unlikely, but I can hope) this excellent investment book will have to do in the current paperback form. Remember, if you are considering investing in stocks - start here, read this book! And even if you think you know it all, you still should read Lynch's book, it's that good.

Read it
If your read one book on investing, make it this book. If you visit one site on investing, make it Fool.com

The kind of patience required in seeking the kind of gains you can only reap by holding through volatility and buying & selling on fundamentals & valuation is the key piece of knowledge that you will gain from this book. We're too bombarded on a daily basis about the daily swings of the market - the result? More and more people with less patience failing to make the kind of gains that can only come with good stock picking and more importantly, the patience demonstrated by investors like Lynch, Buffet, Graham and Shelby Davis. ... Read more

Book Description

This comprehensive book on bonds takes a practical real-world approach to the subject, and includes a detailed discussion of each type of bond including a wide range of products.Specific chapter coverage discusses not only the instruments, but their investment characteristics, the state-of-the art technology for valuing them, and portfolio strategies for using them.For portfolio managers, fixed income trades, and salespeople. ... Read more

Reviews (6)

I reviewed this book for the publisher (prior edition)
I was a major peer reviewer for the publisher of "Bond Markets, Analysis and Strategies," and have used it several times (perhaps as many as 10 semesters) for both undergrads and MBAs. I have no incentive to give this book any particular rating, but I HIGHLY RECOMMEND IT TO EITHER PRACTITIONERS AND ACADEMICS, AS IT IS AN EXCELLENT TEXT! There are very few weaknesses, and I disagree with most of those cited by the other reviewers listed here. It is clear, concise, loaded with examples, and beautifully written. It is also closely tied to real-world practice without sacrificing the mathematical modeling. Of course, it is no high-level bond pricing text, but it is not supposed to be--it is a broad introduction to bond markets. As such, it succeeds remarkably. In fact, I often refer to it to refresh my own understanding of the structure and pricing of these markets.

I highly endorse it, and will continue using it.

Lots of Jargon
I am a senior majoring in finance at the Curtis L. Carlson School of Management, at the University of Minnesota-Twin Cities. I just got done taking a bond course called: Financial Markets and Interest Rates. For the class we used this text book. Although it is a well-rounded book on bonds, it is very hard to understand if you do not have other examples describing what is going on. My professor who holds an MBA had alternative notes on Microsoft PowerPoint made for us to supplement the hard to understand text. The examples do not fully give a clear idea of what is happening, especially to the beginner learning bonds. I would rate this book 2/5 stars and would look elsewhere for an easier type of book, perhaps a tutorial. This book is used at high level universities including mine and Princeton University. Fabozzi is not fooling around when displaying info on bonds.

Excellent introduction to Bond Markets - VERY well written
If you think of this as an introductory book to the world of Bonds rather than a field manual for professionals you will find this to be a wonderful book. I find it to be engagingly written (yes, engaging!) with well-chosen examples. It is very nice to be able to read a book about Bonds and find it stimulating. It would have been easy to write a book that could act as a sleep-aid. Instead, this book provides learning objectives for each chapter and the prose is so inviting that I felt the book to be a page-turner.

The math used is not complicated and is chosen to help understanding rather than demonstrate the sophisticated math used in the actual world of bond trading. If you want that kind of material this isn't the book for you.

I don't know if there is a solutions manual available, but I couldn't find it. If there isn't, there should be. I have never had a college course that used the problems in the book for actual coursework and yet, no matter how simple the problems seem, it is nice for the student to be able to confirm that he or she has indeed found the right answer.

There are also many helpful footnotes that point to materials for further and deeper reading on the subjects introduced in this fine book.

A lot of hand waving, but does help
A little too wordy, but as a management text, I guess its a prerequisite. It covers the gamut of fixed income securities, but only approaches the problems deterministically. The first thirteen chapters are "text" chapters, with the real math starting in chapter 14. However, the math used is elementary, and will not be of much help in the real world. For the fixed income math portion look into "Bond Pricing and Portfolio Analysis" by Olivier de La Grandville.

For a first course in bonds, and if the student has no prior background, this book will indeed be useful. But, for advanced students the book mentioned above should be more insightful.

The best INTRO to the bond market
Fabozzi, you either love him or hate him. Analysis and strategies is a fantastic introduction to the bond market for would be practitioners. But, people with engineering backgrounds beware: This is not the book for you! This book is non-technical and simplistic, a real bore if you took undergraduate Analysis. ... Read more

Book Description

Investing in real estate can be complex and fraught with perils.New investors and seasoned veterans alike make mistakes.In a brand-new take on real estate investing, experienced investor and attorney Robert J. Hill II shares words of wisdom gained through experience from successful real-life real estate investors nationwide.This is practical advice on the real-life traps that trip up eventhe most experienced investors.

What No One Ever Tells You About Investing in Real Estate will help new, experienced, and would-be real estate investors identify pitfalls and learn tricks and strategies to sidestep problem areas.Readers get hands-on advice in such action areas as:
*Mastering the basics.
*Understanding types of properties and different ways deals are structured.
*Finding profitable real estate deals.
*Financing opportunities.
*What to do when closing as the buyer or the seller.
*How analyzing the sale differs when you're selling versus when you're buying.
*Smart strategies for maintaining rental properties.

Inspiring, motivational, and supportive, readers will learn from these inside stories, including the funny, embarrassing, or even huge real estate investing mistakes that have never been told.What No One Ever Tells You About Investing in Real Estate also includes a wealth of proven forms that support successful practices. ... Read more

Reviews (2)

Short, Pithy, Practical-Thumbs Up!
This book is like sitting down and brainstorming with a roomful of friends and mentors who share their "good, bad, and ugly" stories about real estate investing.It is not only very accessible because of its short story anthology style, it has 100's of practical ideas for every investor.The stories inspire, without glossing over the very real difficulties of real estate investing.It is both entertaining and useful.I hope there is a sequel in the works.

GET THIS BOOK IF YOU PLAN TO OWN RENTAL PROP.
This is an excellent read to really get an understanding of how well and how poorly managing rental properties can be.It is a short read filled with stories of rental property owners.I've read several books over the past couple months.This is definitely worth your time.If nothing else, you will walk away with stories with possible solutions to reference for your future.

This does not cover financing properties much at all, but it is not the point of the book.I'm now reading "The Weekend Millionaire's Secrets to Investing in Real Estate"- corny title but this book is also excellent...it reviews financing more in detail.
... Read more

Book Description

A market leader, this book has detailed but flexible coverage of options, futures, forwards, swaps, and risk managementas well as a solid introduction to pricing, trading, and strategy allowing readers to gain valuable information on a wide range of topics and apply to situations they may face. ... Read more

Reviews (4)

A Must Have
If you are a student just taken up a course in derivatives or risk management you should have this book. if you find john hull more technical, you have Don Chance who covers options and other derivatives in a greater detail and in more words. everything you want to know about how banks etc have risk mangaement systems in place and market risk instruments is here.

in case you want a greater coverage of options and pricing options, you should definatly take a look at Black Scholes and Beyond by Neil Chriss, a work of art.

Excellent book for concepts
This is an excellent book for non finance majors who would like to grasp the physical concepts behind different derivatives products traded in the OTC markets. The book is ideal for a preperation read for all aspiring to take Financial Engineering / Derivatives as majors in graduate programs.

An excellent books for Derivatives concepts.
If you are interested in the basic concepts governing derivatives without getting into the mathematics of it then this is the ideal book. I recommend this book for any one who is contemplating taking Derivatives as an advanced level course. The book would give a solid foundation to the concepts of risk management.

Understanding Option Theories
This is a wonderful book to have on your shelf for any finance major looking for an understanding of options, futures, and other types of contracts sold in the OTC and exchange markets. The text is fairly easy to follow and provides good examples to help students understand the theories behind option and future markets.

However, I do not feel that this book is for just anyone. Without some financial background I think that this book can be difficult to follow. It is hard to understand the mathmatics behind the theories presented in the text. The diskette is also somewhat disappointing as an aid for understanding the material. The disk only gives Excel generated financial models that you find in the book such as the Black-Shcoles pricing model.

With a good professor, this is a wonderful aid in constructing a foundation for option investing and pricing. And even giving some of its downfalls I would still recommend buying this book. ... Read more

Book Description

"An excellent and comprehensive source of information on hedge funds! From a quantitative view Lhabitant has done it once again by meticulously looking at the important topics in the hedge fund industry. This book has a tremendous wealth of information and is a valuable addition to the hedge fund literature. In addition, it will benefit institutional investors, high net worth individuals, academics and anyone interested in learning more about this fascinating and often mysterious world of privately managed money. Written by one of the most respected practitioners and academics in the area of hedge funds." -Greg N. Gregoriou, Professor of finance and research coordinator in the School of Business and Economics at Plattsburgh State University of New York.

"This is a landmark book on quantitative approaches to hedge funds. All those with a stake in building hedge fund portfolios will highly profit from this exhaustive guide. A must read for all those involved in hedge fund investing."-Pascal Botteron, Ph.D., Head of Hedge Fund Product Development, Pictet Asset Management

"François-Serge Lhabitant's second book will prove to be a bestseller too - just like Hedge Funds: Myths and Limits. He actually manages to make quantitative analysis 'approachable'- even for those less gifted with numbers. This book, like its predecessor, includes an unprecedented mix of common sense and sophisticated technique. A fantastic guide to the 'nuts and bolts' of hedge fund analysis and a 'must' for every serious investor."-Barbara Rupf Bee, Head of Alternative Fund Investment Group, HSBC Private Bank, Switzerland

"An excellent book, providing deep insights into the complex quantitative analysis of hedge funds in the most lucid and intuitive manner. A must-have supplement to Lhabitant's first book dealing with the mystical and fascinating world of hedge funds. Highly recommended!"-Vikas Agarwal, Assistant Professor of Finance, J. Mack Robinson College of Business, Georgia State University

"Lhabitant has done it again! Whereas most books on hedge funds are nothing more than glorified marketing brochures, Lhabitant's new book tells it how it is in reality. Accessible and understandable but at the same time thorough and critical."-Harry M. Kat, Ph.D., Professor of Risk Management and Director Alternative Investment Research Centre, Cass Business School, City University

"Lhabitant's latest work on hedge funds yet again delivers on some ambitious promises. Successfully bridging theory and practice in a highly accessible manner, those searching for a thorough yet unintimidating introduction to the quantitative methods of hedge fund analysis will not be disappointed."-Christopher L. Culp, Ph.D., Adjunct Professor of Finance, Graduate School of Business, The University of Chicago and Principal, Chicago Partners LLC ... Read more

Book Description

This popular text, publishing Spring 1999 in its Second Edition, introduces the mathematics underlying the pricing of derivatives. The increase of interest in dynamic pricing models stems from their applicability to practical situations: with the freeing of exchange, interest rates, and capital controls, the market for derivative products has matured and pricing models have become more accurate. Professor Neftci's book answers the need for a resource targeting professionals, Ph.D. students, and advanced MBA students who are specifically interested in these financial products. The Second Edition is designed to make the book the main text in first year masters and Ph.D. programs for certain courses, and will continue to be an important manual for market professionals. ... Read more

Reviews (48)

The best intro book ever!
Students of derivative pricing techniques are often in a dilemma: Coming from their MBA or undergrad course, they have just build a "brealy-myers" type of intuition on options. Moving towards Hull then allows a deeper understanding. But any serious (eg PhD, Wall Street Analyst) student of derivatives needs to undertstand the math behind modern derivatives pricing. Essentially, this research divides into two streams: Solving Partial differential equations and developing equivalent Martingales. Without a rigorous pre-education (Maths, Physics), most students fail to understand (let alone learn to use) these methods. Nefci is the only book that does not assume lots of prior knowledge, as compared to Merton (1992) or Duffie (who is so bold to write "for mathematical preparation little beyong undergraduate analysis...is assumed" -ask PhD Students how easy this book reads! The answer is its tough!!). In Short, Neftci's book is a true blessing for all "normal" people. Can't wait to get the second edition!

Good explanations, with serious hand-waving
I used this book to teach a Financial Mathematics course, and found its explanations to be generally clear and good. However, part of the reason the text seems so clear is that it doesn't explain much of what's really going on. It covers the right material, but not really in such a way that the reader can then go on to apply the knowledge gained.This is evidenced by the complete (and almost unforgiveable) lack of exercises in the book. It is very easy to feel you understand this sort of material, only to be completely lost when you actually have to solve a problem. Neftci will not help in this regard. I understand that it is difficult to create good exercises, but their absence almost makes me wonder if Neftci realized he was not explaining things in enough detail to let the student actually work with the knowledge. Exercises are the only way to really learn this subject.A basic problem with all these texts is that, try as they might, they cannot impart true understanding unless the student can grasp real analysis at, say, an undergraduate level typically reached by students at a good engineering school. This text tries to avoid the problem by failing to mention any of the analysis...that's not likely to work.

Good Book
I've read Hull, Wilmott and Baxter books but definitely like this book better - particularly for entry (but not easy) level derivative math. Can't say much since English is not my first language. But if you want to learn about Derivative Math and don't have strong background in Math (I'm a Porfolio Manager and have pretty good background in Calculus, Differential Equation, Econometrics) this book is certainly worth considering. I give 4 stars due to the lack of practice problems.

Good book for the right audience
It is amazing that people are not willing to take it what it is, an 'introduction' to mathematics of financial derivatives. The 'reader from New York' of 'notation challenged' seemed to have wanted a rigourous treatment of SDE, yet is sorely disappointed not to find it in this book. IMO it gives an extremely clear exposition of the various tools of SDE and having read it has allowed me to progress to books in which mathematical rigor is stressed over intuition. So in a nutshell this book achieved its stated goal of offering an intuitive and heuristic explanation of mathematics of derivatives to the novices taking their first steps in the financial engineering land.

Notation Challenged
As Yogi might have said: "If you understand this book, you don't need this book.".

If you have a good grip on the industry conventions relative to notation, and have seen the material before, you might understand this book. If not, you won't.

Notation is: 1) frequently wrong; 2) used inconsistently; 3) used out of context (i.e., without foundation); 4) glued in as a concluding argument in a logically non-convex way.

The absence, misuse, abuse of time subscripts makes some of the arguments incomprehensible.

Some arguments pursue a change of reasoning in probability space, then make a jump to an S.D.E. with industry standard notation, but so far out of scope, that the connections are not clear. As one example, if you: 1) know the underlying S.D.E., and if you ; 2) understand the connection between risk-neutral probability and risk-free measure , and if you; 3) understand why a state variable is allowed to commute through an expectations operator because it is no longer stochastic (though why that might be so is not explained), then you will have a chance of understanding the author's argument connecting the transformation of synthetic probabilities to a standard S.D.E.

Some words are capitalized to emphasize, rather than being defined. Sort of like going to a foreign country and shouting more loudly as a communication strategy ... Read more

Book Description

Analysis of Derivatives for the CFA® Program introduces students and practitioners to a practical risk management approach to derivatives. The textbook captures current practice and reflects what the general investment practitioner needs to know about derivatives. It does not simply deliver an explanation of various derivatives instruments and positions but provides motivation for every derivatives position by explaining what the manager wants to accomplish prior to addressing the details of the position. ... Read more

Book Description

Fully revised and updated
Here is the only comprehensive source that explains the various instruments in the market, their economic value, how to document trades, and more. This new edition includes enhanced treatment of U.S. and worldwide regulatory issues, and new product structures.
"If you want to know more about credit derivatives--and these days an increasing number of people do--then you should read this book."
--Merton H. Miller, winner, Nobel Prize in Economics, 1990
"Tavakoli brings extraordinary insight and clarity to this fascinating financial evolution . . ."--Carl V. Schuman, Manager, Credit Derivatives, West LB New York
Janet M. Tavakoli (Chicago, IL) is Vice President of the Chicago branch of Bank of America, where she directs the company's overall marketing of global derivatives and manages its CreditMetrics initiative. ... Read more

Reviews (28)

High Level View of Credit Derivatives
This book provides an up-to-date and comprehensive overview of credit derivatives. Tavakoli provides an excellent resource for credit risk managers who specialize in one area of credit risk management, professionals who are new to the field, or for experienced professionals who need the definitive reference of credit derivatives products.
This book is not about is the mathematical and statistical details in credit risk/portfolio modeling, but Tavakoli does a good job of highlighting various aspects of modeling (such as data availability, limitations of different approaches, etc.). For example, Tavakoli's explanation of first-to-default baskets provides a quantitative explanation of boundary conditions and a qualitative explanation of the products.

The clear, qualitative, conceptual explanations are supported by explanations that show a deep understanding of the underlying mathematics. Numerically minded readers will grasp this, but even those who are a bit numbers shy will find the quantitative examples easy to follow. Tavakoli's book enabled me to discuss the assessment and deployment of quantitative models on an even footing with professional risk managers and the rocket scientists developing these models.

I also recommend Phillip Schonbucher's book on credit derivatives for people who need to model credit derivatives. Unfortunately, the resource doesn't exist that can solve the tough problem of estimating correlation between defaults.

State of the Art
Tavakoli has beautifully written a cutting-edge book on how to think about credit derivatives in the context of the global markets. One doesn't need a Ph.D. in math to understand the concepts presented here, because they are competently explained. Tavakoli evidences a deep understanding of the topic in her ability to make complicated mathematical concepts clear, and explaining how to apply credit derivatives in practice.

I noticed the reader below couldn't be bothered to actually read this book, but seems to have views on what is and isn't appropriate in a finance book. I happen to be Jewish, and thought the review smacked of anti-Semitism. Tavakoli's remarkable explanation of the development of international banking was particularly appropriate in the explanation of sovereign risk and why it occurs (mismatch of cultures and ethics among other reasons). I believe most professionals will agree there is more to credit risk than equations especially in light of recent developments in the international markets.

Tavakoli's ability to integrate multiple business and finance disciplines is one of the reasons I find this book the best product book on the market for credit derivatives.

Derivatives Sales view:
POSITIVE POINTS: Best indepth book on Credit Derivatives. Very readable. Explains very nicely why this derivatives are so important for banks. Non technical.

NEGATIVE POINTS: Focus on banks with only a little chapter on Credit Derivatives as investment products. No explanation how those derivatives are priced (but hey, there are loads of technical books)

Credit Derivatives for the Capital Markets
Tavakoli gives a very clear description of terminology used in the international derivatives marketplace. Jargon doesn't often travel well across borders, so this is especially valuable. It is difficult enough dealing with ISDA language and foreign languages. The peculiarities of high finance add another complicating spin that Tavakoli does an excellent job of clearing up.

The coverage of leverage and total return swaps is especially valuable to asset managers and hedge funds. The use of off-balance sheet financing and upfront collateral is especially useful to those new to total return swap trading. Although Tavakoli gives examples of hubris and humor, this is a serious finance book, and although Schonbucher gives more details on the mathematics in his book "Credit Derivatives pricing, this book is not easy.

Tavakoli demonstrates a strong command of the topic and great skill in explaining a complex topic without glossing over theory. This is an excellent reference book. Credit default swaps and all of the terminology, both standard and non-standard are thoroughly explained.

The graphics are very clear, and there are lots of practical examples with straightforward explanations based on depth of experience and straightforward math. If you are new to finance, this book is not the place to start. If you have a background in bonds or other areas of the capital markets, you can tackle this book. Tavakoli assumes the reader has some experience and draws on this to make credit derivatives a part of the tool kit. You will be able to understand both the theory and real world applications of credit derivatives.

Credit Derivatives
Very clear explanation of credit derivatives and their diverse applications. Tavakoli explains how credit derivatives can actually be oversold on a given reference obligation creatig potential physical delivery problems in the event of default. She also explains the pros and cons of the various types of delivery, specifying various credit events, other triggers.

The explanation of the various terms of the documentation and the reasons for each is very extensive.

The section on total return swaps is particularly good. ... Read more

Book Description

Financial experts agree: Asset allocation is the key strategies for maintaining a consistent yet superior rate of investment return. Now, Roger Gibson's Asset Allocation - the bestselling reference book on this popular subject for a decade has been updated to keep pace with the latest developments and findings. This Third Edition provides step-by-step strategies for implementing asset allocation in a high return/low risk portfolio, educating financial planning clients on the solid logic behind asset allocation, and more. ... Read more

Reviews (10)

What your investment advisor should be doing.
There are many things to like about this book. The emphasis is on providing investment advisors with the information on asset allocation they need to connect successfully with clients. The only real flaw I see in the book is the watering down of material so that clients can understand it. I understand the necessity of doing this but it does leave open the door for dishonesty of the car salesman variety. Every investor even comtemplating using an investment advisor or even a broker should read this book from cover to cover. If he/she hears anything from the selected advisor that deviates much at all from what is here he/she should run not walk out the door. Perhaps the most important contribution of the book is the emphasis on the interaction of portfolio components to produce higher returns than undiversified or underdiversified portfolios. Gibson uses the Commodities Index as one of the portfolio components along with the EAFE, S&P 500, and REITs to show this. This index component is available in practical form as the Oppenheimer Real Assets fund. If you have net investment assets that allow private money management this is not a problem as the money management firm can buy more than 1 million dollars worth and distribute it among the clients. If you do not qualify for a typical money management firm the mutual fund charges a 5.75% load thereby making rebalancing something of a problem. Perhaps infrequent rebalancing would work. Therein lies the problem with the book. Even though Gibson is as honest as the day is long, the information presented is designed to handle the clients expectations and fears. All kinds of techniques and information are presented most of it assuming very little brains from the people who made all that money ( all of whom we would normally be assured are brilliant not just at making money but in all aspects of their lives ). A,B,C,D are all presented but when portfolio design time comes E is recommended and not just due to tailoring to the individuals needs or risk tolerance. Gibson tells the reader that it is necessary to manage the clients expectations and to make the portfolio more like that of the clients friends or more in keeping with clients prior expectations and thereby more acceptable. This may be true. But Berstein does the same thing in The Intelligent Asset Allocator. His reasoning is a little different:many of the models primarily rely on data mining or make certain assumptions and he believes in the use of index funds almost exclusively. So Bersteins portfolios also rely a great deal on judgement. Both believe that tracking error from the S&P 500 may be an issue. When all is said and done this is very much an art form. It is also very much a sales technique albeit an important one. Nevertheless, both this book and The Intelligent Asset Allocator are required reading for any serious investor. Gibson's book also has the best discussion of client risk assessment I have seen.

Good jumping off point.
I found this books very useful. I've been trying to find an intelligent investing style. Read things like "The Intelligent Investor" by Graham and "A Random Walk Down Wall St." by Malkiel and found them dry and somewhat inaccessible. I much prefered Evans and Malkiel's "Earn More (Sleep Better) : The Index Fund Solution" (cheesy title) and Bernstein's "The Intelligent Asset Allocator". Both small and intelligible books. The only problem is they seemed to state the solution to a problem I didn't know. That's where Gibson's "Asset Allocation" I think fits in. It describes what the problem is when trying to invest well. He makes very good arguments on what you can expect and what you'll have to understand. Things that Berstein and Malkiel go into more depth but Gibson gives you the big picture. I started looking for the solution to a problem and found that the last piece I need was to know what the problem was. Gibson's book reads fast and it is interesting. It's well illustrated and is a great jump off point to all sort of other books.

5 Stars
If you read just one book on investing, this is the book.

Gibson explains the principals of modern portfolio theory in a clear logical fashion.

Excellent.

Definitely recommended reading
If I had read this book in the mid-90s as I was groping through the stock market, and feeling thrilled at my success.. I would have probably preserved that thrill a little longer. I could have avoided getting burnt for sure.

A mandatory reading for people who are looking at long-term investing. Chapters 6, 7 & 8 deal with portolio diversification and are relvant and insightful. I found it to be a very useful education and not-too-difficult to follow (but then I have taken finance and accounting classes in school).

The other title along similar lines is "The Intelligent Asset Allocator" and this one has a good correlation tables across all major asset classes on a quarterly and annual basis. very useful and practical piece of information that is missing here.

But there are enough other useful and helpful pieces of information. Overall, definitely a thumbs up.

Buy this if you like making money
I don't think you'll find better advice.

If you would have followed this books "ABCD" allocation, you would have made almost all the gain of the 90's and even been slightly up thru the disaster of the 00's. Better than down 48% for the SP500 eh?

Your broker will hate you if you buy this book, but then maybe that's the best thing that could happen. Stop pretending you can predict the future and start managing your risk. ... Read more

Book Description

The Definitive 4-in-1 Reference Guide to Alternative Assets

Many books cover individual alternative asset classes, but none offers a comprehensive examination of the four major classes as presented in the Handbook of Alternative Assets. This complete handbook merges data and strategies scattered in numerous volumes into one handy guide for the serious investor. The four major classes discussed are:

• Hedge funds
• Commodity and managed futures
• Private equity
• Credit derivatives

Organized by sections–one for each alternative asset class–the Handbook of Alternative Assets demonstrates the benefits and risks of each alternative asset and reveals how these asset classes can be incorporated into a diversified portfolio.

Through expert advice, the Handbook of Alternative Assets details each of four major alternative asset classes and breaks down their quantitative statistical value as well. With this comprehensive handbook on your desk, you’ll begin to use alternative asset classes to both hedge and expand any portfolio. ... Read more

Reviews (2)

The Handbook of Alternative Assets
The Definitive 4-in-1 Reference Guide to Alternative Assets Many books cover individual alternative asset classes, but none offers a comprehensive examination of the four major classes as presented in the Handbook of Alternative Assets. This complete handbook merges data and strategies scattered in numerous volumes into one handy guide for the serious investor. The four major classes discussed are: Hedge funds Commodity and managed futures Private equity Credit derivatives Organized by sections-one for each alternative asset class-the Handbook of Alternative Assets demonstrates the benefits and risks of each alternative asset and reveals how these asset classes can be incorporated into a diversified portfolio. Through expert advice, the Handbook of Alternative Assets details each of four major alternative asset classes and breaks down their quantitative statistical value as well. With this comprehensive handbook on your desk, you'll begin to use alternative asset classes to both hedge and expand any portfolio.
The Handbook of Alternative Assets discusses and describes four types of alternative assets: hedge funds, private equity, credit derivatives and commodity futures.

Truely a Handbook
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I used this book for my preparations towards CAIA Level 1 exam. And I am impressed. Mr. Anson is an authority and this is truely a great book for Alternative Investment aspirants.

If you want to have a very solid grasp of any of the following alternative investment approaches then this is the book you should turn to -

Hedge funds
Commodity and managed futures
Private equity (5 catagories)
....Venture Capital
....LBOs
....Mezzannine Financing
....Distressed Debt

....CrossOver/Interval/PIPE and PEPE funds
Credit derivatives
Corporate Governance

Mr. Anson helps you build strong fundamentals. Actually he clearly explains what constitutes Alternative Assets(Aha !!!) as against fundamental and/or capital assets and what is meant by alternative investment strategies.

This is followed by a rigorous analysis of the topics listed above in that order.

I particularly enjoyed his coverage of Hedge Funds. He explains each of the 10 Hedge Fund strategies in a systematic fashion. From a variety of angles including Market(S&P500), Risk, Regulatory, Due Diligence/Operational/Administrative perspective.

The coverage of Commodity Derivatives is also superb. Although confined to 4 chapters this coverage is sufficient to gain an intermediate level insight into the Commodities.

The coverage for Private Equity is less comprehensive(but good) compared to it's actual scope in real world. I particularly expected a more rigorous coverage for LBOs.

Although I did not touch credit derivatives and CorpGov I could tell you for sure that these topics must have been covered well.
As I read 19 out of 22 chapters.

To put it in a nutshell - This is a very good book for Hedge fund aspirants and prospective Alternative investment professionals.

For more info about CAIA please visit www.caia.org. ... Read more

Book Description

With more than a million copies in print, Robert Allen's Nothing Down for the '90s has probably helped more people achieve success in real estate than any book in history. Countless numbers of his readers are now financially independent and many actual millionaires attribute their wealth to his techniques. Why has this blockbuster bestseller been so successful? The answer is simple: it works! Now, in one of the most practical books you'll ever read, Robert Allen has created effective new wealth strategies for investing in real estate.

Real estate remains the one reliable investment in which profits can be made consistently, no matter where you live. Whether employment figures and stock prices are high or low, the real estate market never dries up -- it is one of the most dynamic income-producing vehicles ever created. The demand for housing will continue to be strong in most areas of the country for the foreseeable future. There will, of course, always be plenty of foreclosures, which are great opportunities to purchase properties cheaply. And, finally, mortgage qualification today is simpler than ever, with new mortgage packages that did not even exist twenty years ago.

Nothing Down for the 2000s shows you how to locate the best buys, deal with real estate agents, and manage properties, all with little -- or no -- money down. Discover step-by-step techniques and dynamic strategies to:

• Use real estate to build monthly income

• Finance bargain properties for equity or cash flow

• Guarantee and secure your retirement

• Find and profit from foreclosures before they are publicly listed

• Sell and trade for maximum gain

• Increase property value

• Use owner financing to create opportunities

• Obtain direct, legal tax cuts

• Profit from conversions

• Develop effective negotiation techniques, and much more

Excellent for beginners or experienced investors, Nothing Down for the 2000s is the key to generating low-risk, high-profit wealth and to a potential future of security and financial independence. ... Read more

Book Description

Investment pros know: skyrocket stocks and high-flying money managers come and go, but you only achieve superior long-term results by sticking with a sound, prudent, well-conceived investment plan. In The Management of Investment Decisions, pioneering financial consultant Donal Trone, along with William R. Allbright and Philip R. Traylor, presents the proper ways to: Analyze your client's current position and potential; Develop an Investment Policy Statement that all involved will read and, more importantly, understand; Approach, understand and build the portfolios of high net worth families. ... Read more

Reviews (2)

What Fiduciaries, Trustees, and Professionals need to know
This book is excellent.If you are responsible for investing otherpeople's money as a professional, on the board of a foundation or endowmentor are someone who is a trustee on an account, this book is for you.Thisbook goes over important guidelines that should be followed to protect thefunds and yourself.

Sound Advice on Prudent Asset Allocation
The text was clear, concise, and provided valuable practical insight into the role of an investment advisor with respect to a well-developed investment policy statement and asset allocation methodology. The readingwill be of great value to any portfolio consultant looking to manage fundsprudently and with success. ... Read more

Book Description

Whether youre a first-time real estate investor or a seasoned professional, The Complete Guide to Buying and Selling Apartment Buildings helps you map out your future, find apartment buildings at a fair price, finance purchases, and manage your properties. Now revised and expanded, this Second Edition includes tax planning advice, case studies of real acquisitions, and appendixes that add detail to the big picture. Plus, it includes a handy glossary of all the terms investors need to know, helpful sample forms that make paperwork quick and easy, and updated real estate forecasts. With this comprehensive guide at hand youll find profits easy to come by. ... Read more

Reviews (21)

Great Book
This was the first book I have purchased on the subject of real estate investing in multi-family properties.I have been and interested in the subject for some time however.

I found the formulas and rules the book includes to be invaluable, and used them to create Excel spreadsheets to quickly analyze the hundreds of multi-family listings available.I found the book to be easy to read and understand.

The basics about multi-family properties
This book is very informative if you are a beginner to the multi family world.For anyone that has already dealt with multi family, then you do not need this book.However, Berges other book, real estate finance is a good review for the seasoned apartment owner.In that book he goes over some key performance and efficiency ratios that everyone should be aware of when dealing with multi family properties.

The book covers the general ideas behind multi family properties but of course it will differ by region slightly.The cap rates that he speaks of are not available in say california but might be available in indiana.Overall a good book for beginners to intermediate but definitely not seasoned investors.

Good beginners read. Beyond NOI and CapRate? Look elsewhere
This book devotes a fair amount of time on valuation from a beginners standpoint. Overall good, easy and quick read. The case studies and examples appear a stretch. The author suggest that the sweet spot is to find a property with 20% vacancy, a few minor cosmetic issues. It then claims that that by leveraging a 80% LTV, the owner, in a short period of time can increase the vale and sell for a healthy premium. Hmmm... I want to see Steve Berges try this in Chicago or New York metro areas.

As a relatively new property investor, I found the book useful and would recommend to others. I purchased and downloaded the software at thevalueplay.com which is adequate to complement the book's instruction bias. However, buyers beware, these are password protected Excel spreadsheets with macros and without the ability to add formulas, change things here and there, they are useless.

5 Stars for Berges' 5 Keys to Success
Out of all of the real estate books I've read over the years, this is by far one of the better ones.The author stays focused on the topic of buying and selling apartments and does it in a way that is easy to understand.Let me emphasize that when I say the book is easy to understand, that is not meant to imply that only the basics are covered.Not only does Berges do a great job of explaining the mechanics of the process, but he also mixes in a lot of personal examples which help the reader to connect the dots between pie-in-the-sky theory and real world applications.

Steve Berges concludes the book with an inspiring and motivational chapter he refers to as the 5 Keys to Success, which he points out are not limited to just real estate, but can be applied to any business or profession, as well as to one's personal life.I thought this section was very well written and gave me cause to reflect on my own course in life.

I've read several of the author's other books as well, all of which were good, but I particularly enjoyed The Complete Guide to Real Estate Finance for Investment Properties.Wow...what a great read!It's about time somebody wrote a book that really deals with the financial aspects of real estate (see my review).

Unique Insight into Apartment Market
The author, Berges, provides unique insight into investing in apartment buildings.There isn't much written about this topic, and what is, seems to be very generic.This book, however, provided lots of good examples with specific advice on what to do and what not to do.In addition, Berges sprinkles various tidbits of information throughout the book that while not directly related to real estate, are nevertheless quite relevant to being successful in it.I just finished another book of his, The Complete Guide to Investing in Rental Properties, which I also found to be very enjoyable. ... Read more

Book Description

Provides an overview of fixed-income markets and their derivative markets including treasury, corporate, agency, mortgage-backed securities and debt options, futures and swap markets.Helps the students understand the theory relevant to these markets enabling them to participate in a more intelligent and confident way as corporate customers, traders, bankers, or investors. ... Read more

Reviews (5)

BORING
If you want to waste your money then spend it on Sundaresan.
This book is highly disappointing. If your professor tells you buy it then you can tell him or her to .....
If you want to master fixed income securities, then you only need to purchase one and only one book, namely "Fixed Income Securities: Valuation, Risk Management, and Portfolio Strategies" by Martellini and Priaulet. That's the best book out there.

Much better books out there, Poorly written :(
Only a good book for reference. Difficult to understand author's explaination of analysis of Fixed Income products. Many instances key steps are skipped in problems used for examples. Look for an alternative.

Disappointing
I found this book to be of marginal usefulness. The writing style is not to the point and at times disorganized. The book does not come with spreadsheets despite all the screenshots in the chapters. What good is that? Additionally, it is quite expensive. There are other much better books out there for the same price.

A robust book that covers with breadth and detail
I had the pleasure of taking Professor Sundaresan's Debt Markets course at Columbia. He has tremendous experience in the marketplace. This book does a good job of covering the theory while also covering the practical aspects of the marketplace. One of my complaints is that some topics lacked a step-by-step approach, and you found yourself looking at a huge equation and wondering where it came from.

Hits: Duration, Convexity,Term Structure, Auctions, Treasuries, Corporates, Mortgages.

Misses: Futures, Unsightly 3-dimensional graphs

I also have Fabozzi's Handbook and Fabozzi's Bond Markets, Analysis and Strategies. This book is comparable to the latter.

technical book focused on the debt markets specificities
This very book provides a very objective detailed overview of the debt markets. The author is at his best discussing fixed income securities. Since it is the first edition, there are several minor technical mistakes which I am sure going to be corrected by the author in the second edition. I wish the author had focused more on the derivative side of the fixed income part of the paradise. I also expected to encounter more actual application coverage, i.e. hedging, speculation, arbitrage etc. One chapter in the end of the book encompassing advanced strategies with fixed income derivatives would be very helpful for various segments of readers. Otherwise, it is a very good non-textbook textbook. Vladi Shlepkov St.Petersburg, Russia ... Read more

Amazon.com

Ugly Americans documents the "Wild East" of the mid-1990s, where young, brilliant, and hypercompetitive traders became "hedge fund cowboys," manipulating loopholes in an outdated and inefficient Asian financial system to rake in millions. Using a concept called arbitrage, they made their fortunes mainly on minute shifts in stocks being sold on the Nikkei, the Japanese stock market, collapsing banks and nearly bankrupting the Japanese economy in the process. Other schemes were also concocted, most of which were technically legal, though certainly unethical. This true story revolves around "John Malcolm," who, in exchange for anonymity, agreed to give Ben Mezrich all the access and information he needed to write this book. As a recent Princeton graduate in the mid-1990s, Malcolm accepted an undefined job offer from an American expatriate in Japan to work in the investments field. Though he had no prior experience, he facilitated 25 million dollars worth of trades on his first day on the job, and it just got more exciting from there. He soon joined a small group of expatriates, all in their twenties and mostly Ivy League graduates, who lived like rock stars, thriving on the stress and excitement of their jobs to create their own steroid versions of the American Dream half a world away. Mezrich tells this riveting story well, incorporating elements of the culture into his narrative, including the infamous and pervasive Japanese "Water Trade," or sex business, romantic intrigue, and even run-ins with the Yakuza, the Japanese mafia. Though there is little real analysis of their financial dealings and how they ultimately changed the rules of finance in Asia, this entertaining page turner does offer a glimpse into a world little explored in print until now. --Shawn Carkonen ... Read more

Reviews (51)

LIved in Japan and this book is a good first step
I agree some of the details are faulty and things of this sort, but for a entertainment read this book is very good. I also think if you had no influence from Asia this book might be a eye opener and help you get interested in the region.

Disappointing
Having lived and worked across Asia within multiple industries (including finance), I eagerly awaited this read.Unfortunately, I found the same old clichés on Japan and Capital markets. It takes years to really understand the region so fault to the author, but for something less glammed up and exoticised, (yet also based on a true story), I might suggest Clissold's, "Mr. China." Better yet, spend some serious time in Asia. It will pay off for you in the next century.

Just Ugly
I was excited to read this book: 1) the same author as the compelling Bringing Down the House, and 2) a plot about hedge funds -- a topic of personal and professional interest to me.The excitement dwindled fast.
Ben Mezrich is a very average writer.He tries too hard at times to describe a different world, only to lose all crediblity in the eyes of those actually familiar with that world.He doesn't trust the imagination (or intelligence) of his reader, whom he constantly talks down -- perhaps a Harvard-learned trait.
Mezrich needs to get over his lovefest for Ivy league schools and their students.People who attend the Ivies are smart, but so too are the students of another 50 or so US institutions.It gets sickening after a while to read his constant, self-congratulatory fawning over the Ivies.(For the record, I have met far fewer people in the hedge fund world from the Ivies than I have from schools like UVA, Michigan, and Chicago.)
The plot of Ugly Americans seems very forced.If someone had told me this story over dinner, I certainly wouldn't have felt compelled to turn it into a book or a movie.The details don't hold together at all, and even if they did, they wouldn't be fascinating either to those versed or unversed with hedge fund strategies.
Overall, this book didn't disappoint me strictly because of Mezrich's superficial understanding or explanation of hedge fund strategies.It disappointed me because it is poorly written and weakly characterized.It disappointed me because it wasted my scarcest resource, free time.It disappointed me because I really did enjoy BDTH, but now my view of that compelling read is tarnished too.

A Good Read
I dont know how accurate some of the minor details of this book are as some have mentioned "full ride to ivy league schools etc.) but regardless I really like this authors writing style and usually read his books all the way through because they are very well done as far as capturing and keeping your attention.

Good read; could have used more technical details
Although Mezrich embellishes the characters enough to make an exciting semi-fiction story, I was very interested when the actual topics of hedge funds and arbitrage were breached. Yet, Mezrich seemed to make little effort to explain these in anything more than basic terms. Considering that the book is based on the exploits of high finance, I wish there was more in-depth analysis. Still, it is an intriguing book and a fast-paced read. ... Read more