Fixed Income Books

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7 Best Fixed Income Securities Books

Fixed income securities are considered as rather low-income instruments but of late there has been a tremendous shift in the fixed income markets which have become increasingly attractive to modern investors in terms of strategic growth and returns made possible. Below is the list of 7 best books on fixed income securities –

  1. The Handbook of Fixed Income Securities ( Get this book )
  2. Fixed Income Mathematics: Analytical & Statistical Techniques ( Get this book )
  3. Fixed Income Securities: Tools for Today′s Markets (Wiley Finance) ( Get this book )
  4. Fixed Income Securities: Valuation, Risk, and Risk Management ( Get this book )
  5. Fixed-Income Securities: Valuation, Risk Management, and Portfolio Strategies ( Get this book )
  6. Fixed Income Analysis (CFA Institute Investment Series) ( Get this book )
  7. Interest Rate Risk Modeling: The Fixed Income Valuation Course (Wiley Finance) ( Get this book )

Let us discuss each of the fixed income books in detail along with its key takeaways and reviews.

Fixed Income Books

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#1 – The Handbook of Fixed Income Securities

by Frank J. Fabozzi (Author), Steven V. Mann (Author)

The Handbook of Fixed Income Securities, Eighth Edition

Book Review

This is a highly organized work on the fixed income securities market, which introduces readers to the fundamental concepts, strategies, and principles which can not only help understand and evaluate fixed income securities better but enhance the returns as well. In an increasingly competitive financial industry where investing is all about returns, the authors of this brilliant work go out of their way to lay down an easy-to-follow approach for investors to profit from fixed income securities, usually considered a low-return category of instruments. However, what makes this work stand apart is the manner in which readers are made aware of the complex workings and underlying risks of the fixed-income securities market. Some of the key topics covered in this work include macroeconomic dynamics and corporate bond market, risk analysisRisk AnalysisRisk analysis refers to the process of identifying, measuring, and mitigating the uncertainties involved in a project, investment, or business. There are two types of risk analysis - quantitative and qualitative risk analysis.read more and multifactor fixed income models, high-yield bond portfolio management, and hedge fund fixed income strategies, among other things. Investors, as well as financial professionals, can gain a clearer understanding of the fixed incomeUnderstanding Of The Fixed IncomeFixed Income refers to those investments that pay fixed interests and dividends to the investors until maturity. Government and corporate bonds are examples of fixed income investments.read more securities market with this work and can very well utilize the analytical tools and methodologies presented for identifying profitable opportunities in this complex market.

Best Takeaway 

<< Get this book >>

#2 – Fixed Income Mathematics

Analytical & Statistical Techniques 

by Frank J. Fabozzi  (Author)  

Fixed Income Mathematics, 4E: Analytical & Statistical Techniques

Book Review

This fixed income securities book is an excellent work on mathematical and statistical tools available to study and evaluate fixed income securities for avid investors. The author offers detailed coverage of evaluation methods for mortgage-backed-securities, asset-backed securitiesAsset-backed SecuritiesAsset-backed Securities (ABS) is an umbrella term used to refer to a kind of security that derives its value from a pool of assets, such as bonds, home loans, car loans, or even credit card payments.read more as well as other fixed income securities for investors and finance professionals. A realistic assessment of risks involved in fixed income securities and managing that risk effectively is another area which this work deals with. Some of the key concepts covered in this updated fourth edition include interest rate modeling, credit risk concepts and measures for corporate bonds, time value of money, bond pricingBond PricingThe bond pricing formula calculates the present value of the probable future cash flows, which include coupon payments and the par value, which is the redemption amount at maturity. The yield to maturity (YTM) refers to the rate of interest used to discount future cash flows.read more, conventional yield measures, and price volatility for option-free bonds. The author helps readers become acquainted with the latest analytical techniques and the framework for credit risk modeling, which plays a critical role in the study of fixed income securities. A highly commendable work that deals with mathematical approaches to understanding and evaluating fixed income instruments along with strategizing and investing with this complex market with confidence.

Best Takeaway 

  • This top fixed-income book is a thoroughly professional reference guide on statistical and mathematical strategies to invest in fixed income securities for higher returns.
  • The biggest achievement of the author is elucidating the complex nature of risks and methodologies to evaluate fixed income instruments and mitigate risks effortlessly and how to utilize available tools in personalized investment strategies.
  • A highly recommended read for finance professionals and investors with a keen interest to understand and invest better in the fixed income securities market.
<< Get this book >>

#3 – Fixed Income Securities

Tools for Today′s Markets (Wiley Finance)

by Bruce Tuckman  (Author), Angel Serrat (Author)  

Fixed Income Securities: Tools for Today's Markets

Book Review

This fixed income book is an excellent manual on the practical application of strategies, principles, and methodologies available for assessing and evaluating fixed income securities. Anyone interested in quantitative techniques would find this work very informative and of great practical utility describing most of the quantitative concepts in an easy-to-understand manner along with practical illustrations for most of them. Some of the key topics covered include arbitrage pricing, interest rates, risk metrics, repo, rate, and bond forwards and futures, interest rate and basis swapsSwapsSwaps in finance involve a contract between two or more parties that involves exchanging cash flows based on a predetermined notional principal amount, including interest rate swaps, the exchange of floating rate interest with a fixed rate of interest.read more, and credit markets. This work presents a complete overview of global fixed income markets and can help readers better understand how these markets function and how to make use of advanced quantitative tools and techniques for accurate valuations of fixed income securities. The current third edition offers a lot of additional information on areas of key relevance to today’s markets, making it a valuable asset for finance professionals.

Best Takeaway 

  • This best-fixed income book is a practical quantitative manual on the study and evaluation of fixed income securities, which provides a unique perspective on global fixed income markets as well.
  • This work acquires greater value for professionals by providing practical illustrations for a number of advanced quantitative tools and techniques for assessment and valuation of fixed income instruments.
  • Anyone interested in the practical application of quantitative techniques would find relevant and useful information here.
  • A must-read for financial professionals as well as amateurs interested in enhancing their understanding of fixed income markets.
<< Get this book >>

#4 – Fixed Income Securities

Valuation, Risk, and Risk Management

by Pietro Veronesi  

Fixed Income Securities: Valuation, Risk, and Risk Management

Book Review

This fixed income book is a complete guide on the evaluation and assessment of various fixed income instruments with an added emphasis on enhancing the conceptual understanding of risk management practices in the field. The author engages in a detailed discussion of the forces which shape the markets and affects the prices along with ways to define risks accurately and what kind of risk management practices can be adopted for desired results. Important methodologies for evaluating such instruments and associated risks are outlined, which require a detailed understanding of concepts to be able to adapt them for individual needs and preferences. The complex nature of fixed income securities is demystified for an average reader, making the markets that much more accessible. Along with that, a number of useful tools for studying fixed income instruments are also discussed. Bringing theoretical aspects to bear upon the practical applications in terms of evaluating fixed income securities and making strategic risk decisions while investing is what makes this work unique in its appeal. A highly recommended work on the valuation of instruments and risk management practices in fixed income markets.

Best Takeaway from this Best Fixed Income Book

  • A useful guide to the theory and practice of fixed income instruments’ evaluation and risk management for professionals as well as laymen.
  • The author makes an exceptional effort to describe the underlying concepts of risk management as applicable to fixed income instruments.
  • Some of the key valuation methodologies are also explained in detail for those looking to acquire a basic understanding of these ideas.
  • A commendable work on evaluation and risk management of fixed income instruments for professionals as well as amateurs.
<< Get this book >>

#5 – Fixed-Income Securities

Valuation, Risk Management, and Portfolio Strategies

by Lionel Martellini, Philippe Priaulet  

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

Fixed Income Book Review

This work provides comprehensive textbook material for fixed income securities courses, including MBA and MSc Finance. The authors have extensively covered traditional as well as alternative investment strategies for the fixed income marketFixed Income MarketFixed Income Market is where fixed income securities like government bonds, corporate bonds and treasury bills are traded. In his market, the investors receive a regular income, whether on a monthly, quarterly, half-yearly or yearly basis, and repayment of principal amount on maturity.read more, thus enhancing the breadth and scope of this work. A building block approach has been adopted in describing and illustrating concepts to make it an ideal learning resource for students in the field. Numerous worked examples in excel are included for the practical guidance of readers along with PowerPoint slides for additional learning assistance. Some of the key knowledge areas covered in work include fixed income hedge fund strategiesHedge Fund StrategiesHedge fund strategies are a set of principles or instructions followed by a hedge fund in order to protect themselves against the movements of stocks or securities in the market and to make a profit on a very small working capital without risking the entire budget.read more, derivation of zero yield curveYield CurveThe Yield Curve Slope is used to estimate the interest rates and changes in economic activities. It is a plot of bond yields of a particular issuer on the vertical axis (Y-axis) against various tenors/maturities on the horizontal axis (X-axis).read more and credit spreads along with interest rate and credit derivatives. Authored by acclaimed fixed income experts, this work presents nothing less than a treasure-trove of information on fixed income investmentFixed Income InvestmentFixed income investment is a type of investment in which the investor receives a fixed and relatively stable stream of income in the form of dividends or interest over a period of time. Companies and governments typically issue fixed investments in the form of debt securities.read more strategies for students as well as professionals.

Best Takeaway

  • An unofficial textbook for fixed income students of MBA and MSc Finance, which basically covers the entire gamut of investment strategies for fixed income instruments and illustrates them with numerous practical examples.
  • This work excels as a learning resource that can not also provide reference material for anyone interested in acquiring a detailed understanding of traditional and alternative investment strategies for fixed income securities.
  • A highly recommended resource for students as well as finance professionals.
<< Get this book >>

#6 – Fixed Income Analysis

(CFA Institute Investment Series) 

Barbara S. Petitt (Author), Jerald E. Pinto (Author), Wendy L. Pirie (Author), Bob Kopprasch (Foreword)  

Fixed Income Analysis Workbook (CFA Institute Investment Series)

Book Review

The CFA Institute investment guide methodically introduces readers to fundamental concepts of fixed income before describing a general framework for the valuation of securities. This work is aimed at describing how investment professionals analyze securities and manage fixed income portfolios by successfully synthesizing a number of complex factors. The authors have adopted a method of stepwise engagement with readers on how to develop the necessary skills for analysis of risk, asset-backed securities, and term structureTerm StructureThe term structure is the graphical representation that depicts the relationship between interest rates and various maturities. The graph itself is called a “yield curve.” The term structure of interest rates plays an essential part in any economy by predicting the future trajectory of rates.read more analysis before going ahead with valuation and management of investment portfolios in a client-based scenario. These are some of the key features which make this work a valuable resource for students and finance professionals alike. Essentially developed for CFA students, this is nothing less than a compendium of theoretical and practical knowledge on fixed income markets.

Best Takeaway 

  • A specialized guide to fixed income analysis by CFA Institute, designed not only for CFA students but for financial professionals and non-finance individuals as well.
  • This is an excellent resource for anyone willing to acquire a complete working knowledge of strategies, principles, and risk management for fixed-income investments.
  • Readers would learn a great deal not only about how fixed income markets work but also about analyzing fixed income securities and managing fixed income portfolios as a professional.
<< Get this book >>

#7 – Interest Rate Risk Modeling

The Fixed Income Valuation Course (Wiley Finance) 

by Sanjay K. Nawalkha  (Author), Gloria M. Soto (Author), Natalia A. Beliaeva (Author)  

Interest Rate Risk Modeling : The Fixed Income Valuation Course

Book Review

This work is part of a trilogy on fixed income valuation and risk analysis, but this volume specifically focuses on interest rate risk modeling, which explores various interest rate riskInterest Rate RiskThe risk of an asset's value changing due to interest rate volatility is known as interest rate risk. It either makes the security non-competitive or makes it more valuable. read more models for fixed income securities and their derivatives. This is essentially a work on the interest rate risk and how to measure and manage it strategically, which is not possible without interest rate risk modeling. Some key components of interest rate risk management discussed in this work include durationDurationDuration is a risk measure used by market participants to measure the interest rate sensitivity of a debt instrument, e.g. a Bond. It tells how sensitive is a bond with respect to the change in interest rates. This measure can be used for comparing the sensitivities of bonds with different maturities. There are three different ways to arrive duration measures, viz. Macaulay Duration, Modified Duration, and Effective Duration.read more, convexity, M-absolute, M-square, duration vector, key rate durations, and principal rate duration, among others. Authors have illustrated the application of models to various fixed income instruments, including regular bonds, callable bondsCallable BondsA callable bond is a fixed-rate bond in which the issuing company has the right to repay the face value of the security at a pre-agreed-upon value prior to the bond's maturity. This right is exercised when the market interest rate falls.read more, T-bill futures, T-bond futures, Eurodollar futures, interest rate swapsInterest Rate SwapsAn interest rate swap is a deal between two parties on interest payments. The most common interest rate swap arrangement is when Party A agrees to make payments to Party B on a fixed interest rate, and Party B pays Party A on a floating interest rate.read more, forward rate agreementsForward Rate AgreementsForward Rate Agreement or FRA is a contract between two entities wherein interest rate is fixed for the future. The purpose of such contracts is hedging against the fluctuating interest rates. read more, bond options, various yield options, swaptions, and mortgage-backed-securities along with others. This work comes with a companion CD-ROM containing a great deal of useful information, including formulas and programming tools, to implement various risk models and valuation techniques for fixed income securities. A thorough treatise on interest rate risk modeling for students, financial professionals, and anyone else interested enough to learn and apply the concepts without much effort.

Best Takeaway 

  • Specialized work on interest rate risk modeling, which explains the concept of interest rate risk and details the methodologies adopted for measuring and managing interest rate risk.
  • This work illustrates how to apply risk models to an entire spectrum of fixed income instruments, and a digital companion to the work enhances its value further.
  • This companion guide includes a wealth of information on valuation and risk management of fixed income securities along with programming tools and excel/VBA spreadsheets for hands-on analysis. In short, an ideal work for anyone interested in learning theoretical and practical aspects of interest rate risk modeling for fixed income securities.
<< Get this book >>

I hope you have enjoyed our assemble on good read fixed income books.

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