Fixed-income-securities

The book is concisely written and loaded with practical examples. A must for the reference shelf of bond professionals.

The author delivers clear and concise explanations on the more esoteric aspects of fixed-income securities. It is written using an easy to understand, building-block approach which enables the reader to grasp the theory behind creating synthetic securites. This book goes beyond textbook definitions and introduces essential strategies which can be used by trading managers, risk managers, and individual investors.

Dr. Phoa tackles a variety of advanced (occasionally esoteric) topics in Fixed Income. The author manages to describe some fairly complicated math in an intuitive and understandable way, while maintaining some degree of rigor. The field is huge, and in order to cover so much in so few pages, a background in the bond markets is assumed. Excellent discussions on empirical analysis of yield curve movements, valuation of bond options using one- and two-factor interest rate models, and mortgage prepayment modeling are highlights.

As opposed to nearly all other books on Fixed Income Analytics, Phoa presents interpretations of the analysis. The result is much less textbook-like, and much more intellectually engaging. While I do not agree with all of his conclusions, his arguments are well crafted and substantiated.

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

Thank you,

Finding a single source which contains a clear explanation of all the bond conventions is very difficult. When you need this
book, you really need this book. Thanks Dragomir.

This book provide a visual approach to me to understand more what is the text talking about. It is very clear to me to learn and see the result of a portfolio. Very useful.

Contrary to the stock market where small orders (say for 13 stocks priced at $47) are not uncommon (in fact, encouraged), the US bond market is a market dominated by institutions and high net worth individuals (I say US because the situation is quite different in Europe). A bond broker in the US is not eager for your business unless the size of your order is at least six figures. This fundamental market reality is reflected in the kinds of books on investing: bookstores offer countless books on stocks, but only very few books on bonds (if any at all). Almost all books on bonds recommend that investors do not buy individual bonds but put their money into bond mutual funds. The book under review is an exception to this rule. Written specifically for the needs of the "high net worth" individual, it deals with all aspects of constructing and maintaining an individual bond portfolio. The emphasis is on government and municipal bonds. The more interesting class of emerging market bonds is completely left out presumably because of risk considerations. The book is very well written and a pleasure to read. Although it is impossible to write a book on bonds without using equations, the author restricts the use of formulas to a minimum and prefers to illustrate abstract concepts using numerical examples. In my opinion, this is one of the best books on bonds. I recommend it highly to everybody interested in buying individual bonds including "low net worth" individuals. The clarity of exposition and the wealth of details is not matched by the competion.

I like this book. It provides a good summary of a complete list of the term structure models. Best of all, it contains a consistent methodology for deriving interest rate derivatives. The forward measure technique is explained very well. However, symbols are not clear and later chapters are too "concise". I would like to see more numerical examples. Also, an inclusion of numerical methods should be helpful.

If you're looking for the best textbook on the subject, you need to get "Fixed-Income Securities: Valuation, Risk Management and Portfolio Strategies" by Lionel Martellini, Philippe Priaulet, and Stéphane Priaulet.

It is the most up-to-date book on the subject. Moreover, you will get a lot of worked-out examples and end-of-chapter problems with solutions.

It is the best investment you can make on a fixed-income book.

Thank you,

A great book that makes a complicated and necessarily highly quantitative subject accessible to a wider public.
Able to simply explain difficult concepts.
Probably the best in fixed income teaching.
Your money will be well spent. Congratulations to Bruce Tuckman.

Since all of the reviews cover the first edition, it's definitely worth noting that the 2nd edition is much improved. I've read most of the introductory books on fixed income, and none explain the market as clearly and intuitively as Tuckman. Anyone who is joining a fixed income desk or who seeks to learn more about this area should pick up this book before any others. The repo markets, interest rate and asset swaps, forwards, and futures are all covered in excellent detail. There are few discussions of duration and convexity that rival this one. Overall, this book scores high in all major areas and is highly recommended by all those I know who have come across it.

Ok, so Fabozzi is the ultimate in reference material and general fixed income awareness. The book is good, it provides most of what you need to understand fixed income valuations, particularly essential bond pricing. However, the book really serves well mostly as a reference. There are few true explanations of formulas. With a little effort you can figure out the derivations yourself, but still, is not the point of buying a book with "mathematics" in the title to have something to guide you through that step? Again, worth having, but not the ultimate to explain the nitty gritty, though not sure that that text exists.

Even though this is not really a advanced book on fixed income products analysis/modeling. It is, for technical background, a good induction book for basic fixed income products with basic analysis tools.

This book is great for anyone that deals with fixed income investment vehicles. From basic bonds to stripped mortgage backed securities, the math and concepts behind their valuations are discussed and explained in clear and concise terms. Sample computations with complete answers are supplied throughout the text.

(...) It gives a lot of general info on a lot of different Fixed income topics. It's a good ref. for people just getting involved with fixed income. However if you are looking for focused material, you should look into one of Frank's books on that area. Good overall intuition on Fixed income markets and products.

If you are in the financial world dealing with fixed income directly or indirectly, just entering into the fixed income world, or looking for a great FI reference, go no further. This is it. Very broad with heavy MBS influence as well as the basics of fixed income. This is for novice to intermediate FI users. Academics and advanced portfolio managers might find this general. But, for the large population this is the spot.

This book has been around for years and new editions are lapped up by fresh generations of bond geeks. You will find a copy on pretty much every fixed income desk in the industry (including mine). Why all the hoopla? Because there is simply no other book like it. Because it is simply the most comprehensive survey of the various fixed income markets in print. For a basic understanding of the structure and institutional aspects fixed income securities, Fabozzi is the inevitable first stop. All this being said, it is important to understand the book's weaknesses. There is relatively little depth in terms of analytics and if you want formulae you will have to look elsewhere. But for basic overviews, structural details and the orientation that is a precondition for deeper study, the Handbook is in a class by itelf.