How To Build A Framework For Forecasting Interest Rate Market Movements With Trillions Of Dollars Worth Of Trades Conducted Every Year In Everything From US Treasury Bonds To Mortgage Backed Securities, The US Interest Rate Market Is One Of The Largest Fixed Income Markets In The World Interest Rate Markets A Practical Approach To Fixed Income Details The Typical Quantitative Tools Used To Analyze Rates Markets The Range Of Fixed Income Products On The Cash Side Interest Rate Movements And, The Derivatives Side Of The Business Emphasizes The Importance Of Hedging And Quantitatively Managing Risks Inherent In Interest Rate Trades Details The Common Trades Which Can Be Used By Investors To Take Views On Interest Rates In An Efficient Manner, The Methods Used To Accurately Set Up These Trades, As Well As Common Pitfalls And Risks Providing Examples From Previous Market Stress Events Such As Includes Exclusive Access To The Interest Rate Markets Web Site Which Includes Commonly Used Calculations And Trade Construction Methods Interest Rate Markets Helps Readers To Understand The Structural Nature Of The Rates Markets And To Develop A Framework For Thinking About These Markets Intuitively, Rather Than Focusing On Mathematical Models Intuitive This book delivers a very clear intuition of the products with only the necessary quantitative tools I came from a quantitative background During my studies at school, it was all about math and we didn t talk a lot about the intuition of the products or how the products work I was looking for a book to bridge the gap and this book does this job very well Thank you Siddhartha for sharing and putting all these together Fixed Income concepts explained very clearly, I used this book when I was preparing for investment bank interview Must buy
This is a great book for anyone who wants to successfully trade interest rate products In the initial chapters, Jha motivates the intuition and math critical to understanding the interest rate markets Then, he describes the enormous range and uses of interest rate instruments and the numerous factors and issues that must be understood This leads to a thorough discussion of convexity, duration, yield curve, hedging, swaps, futures contracts, carry, risks, etc.
For a trader or anyone interested in the markets, this book goes beyond the math and points out that a purely mathematical understanding is not enough to be successful Often, as Jha amply demonstrates, the great opportunities and risks arise when the assumptions underlying the math or human behavior break down There are examples from 2007 and 2008 that serve as guides and warnings Jha also discusses the less obvious and frequent opportunities that present themselves because of subtle factors such as excess supply and demand, yield curve shifts, regulatory constraints, futures contract expiration, futures contract definition, and volatility to name just a few.
I bought this book because many traders recommended it in various trading discussion groups and forums In this book, Jha provides a practical framework for understanding and profiting from trading in the interest rate markets.
Great book for an introduction of the interest rate products from sell side perspective If you have a chance to read books from buy side and or interest rate trading in other countries, say China, besides reading this one, would be far interesting.