Good Fixed-Income investing book?

What are some good fixed-income investing books? I have the CFA curriculum, which provides a wealth of information, but I'm looking for something a little less academic. Topic of interest include: distressed debt investing, ABS and other structured products

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The general Fabozzi handbook is great, if you need something more focused on structured products he also has Handbook of Structured Financial Products as well as Structured Products and Related Credit Derivatives. Fabozzi is a major contributors to the CFA curriculum.

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kraken:
what about Tuckman's?

I liked the Tamara Henderson book ..it's very simple and hands on

I think this is just what I was looking for. I may use this as an introductory book before i move on to Fabozzi.

 
kraken:
Yes Henderson book is very easy to read and understand. Best book for beginners IMHO (I don't work in FI btw).

Rather than post a new thread, I thought I would revive this one. I've searched through several different topics about fixed income, but haven't found a concrete answer to my inquiry.

I'm looking for a book that can give me a concise yet thorough understanding of fixed income, including pricing, benchmarks, spreads, speeds. I am interested in all types of fixed income as well. I am definitely looking at a beginner's guide/introduction to everything.

I saw that everyone referenced Fabozzi, but I saw that the book is listed as 1500 pages. Several posts mentioned that it was a huge conglomeration of various essays and information, not all written by him, and often poorly organized. I've seen references to Tuckman and now Tamara Henderson's book.

With that being said, is Fabozzi's book still the best option for a beginner, or should I start with Tuckman or Henderson (or even another book) and then move on to Fabozzi after I get the basics down?

Much appreciated.

 
Best Response

I'm a beginner who hasn't entered college yet, and I would say Fabozzi's Fixed Income Analysis book is a good starter. The first few chapters provides a good overview of the different types of bonds etc, before it gets more mathematical with all the different calculations when valuing bonds etc.

An easier alternative would be 'The Bond Book' by Annette Thau. It's a lot less technical since its catered for retail investors, though has a lot of relevant concepts. Fabozzi's book covers all the material in 'The Bond Book' though.

I'd be willing to email the pdf version of 'The Bond Book' for a SB. PM me.

 

First Henderson's (it's like FI for dummies). Then maybe Tuckman's. But I'd stick to just one book. If you are buying just one book I suggest you get Tuckman (60$), there's anew edition coming out soon, since I believe Henderson's book is a bit overpriced (90$ for 222 pages).

However it really depends about your professional expectations. I'd look at Distressed Debt Analysis and Corporate Financial Distress and Bankruptcy

If you're more of a quant you can read The Brigo and Mercurio book and Hull's. But if you go this route you will end up working with papers and developing your own models.

Personally i'd stick to the CFA curriculum.

Of course you can look up these books in your local library and decide which one is better suited for you. They are all available online (not so legal variety) but I'd avoid downloading them if you don't want some lawyers knocking your door and asking you to pay several thousand bucks.

 

this book is written by Bruce Tucman. Maybe the spelling of the author's name is wrong, but the pronounciation is exactly the same. this book is recommanded by my professor. I think it's really good entry book. Fabozzi's handbook maybe too thick...

 
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Do you already have an idea of what parts of fixed income interests you-rates, corporate, ASBs, etc? Or is that what you're looking for?

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SATrading:

Do you already have an idea of what parts of fixed income interests you-rates, corporate, ASBs, etc? Or is that what you're looking for?

Thanks for all your reply, I still don't know in wich part I want to work...I'm looking for some highlight about this specific market market and how to break in. I give you my email if you have some time I have a lot of questions to ask.

 

I've done a lot of work with fixed income in an educational capacity and there were two books the group had us read during our first semester in the group: Fabozzi Handbook of Fixed Income Securities and Crescenzi The Strategic Bond Investor. The division of the group I am in focuses completely on corporate, investment grade, debt. I'd recommend also knowing a lot about the macroeconomics of the fixed income market, because you can invest in the right credits, but still get killed if you put your bonds in the wrong maturity buckets.

 

By any chance, do you guys know about books more useful for sub investment grade fixed income or ABS? I'm 1st year analyst at fixed income asset manger and Fabozzi from my point of view is pretty much knowing the basics - how the mechanics work etc. I'd be curious if you guys know something useful to read when I'm comfortable with that kind of stuff. Thanks!

 

Fabozzi's Handbook of Fixed Income Securities is great/comprehensive but somewhat of an encyclopedia. Do you have a specific topic you're interested in/want to learn about?

There have been many great comebacks throughout history. Jesus was dead but then came back as an all-powerful God-Zombie.
 

Fabozzi is usually mentioned.

Although it focuses on mortgages Salomon Smith Barney Guide to Mortgage Backed Securities is a strong choice. It has a strong chapter on duration and covers the MBS and ABS universe in a very clear language with excellent examples which might be helpful as you can see how different fixed income instruments might be structured and how their cashflows might be affected...senior debt, mezz debt, callable, ect.

If you are just starting fixed income you need to learn/know the below topic/terms cold. They will be the foundation on which all fixed income is based.

  1. Duration--how it is calculated, what it is, what it is used for (one of the key reasons I suggested MBS book). Also the factors that affect it. If rates selloff, duration does??? Lower coupon means????, ect
  2. Yield Curve
  3. Capital Structure
  4. Cashflow waterfall---the basis of all life in the universe

The first few chapters of any fixed income book will cover those topics, but you should really get down deep into them and start calculating DV01s and hedge ratios, ect so that you understand it better. Duration doesn't mean anything until you start to use it.....trust me.

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I am reading a great book now.

Interest Rate markets - A Practical Approach to Fixed Income by Siddhartha Jha

-Very easy to understand -Focuses on intuition over calculations -Does not put me to sleep.

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thanks Gekko21. I got a pretty good intro into duration, yield curves and capital structure in my corp finance class. I was looking for a read that expands on these fundamentals and gets into derivatives like swaps, interest rate caps, floors, and options on options. it seems like fabozzi's book is the go-to read here so I'll prob go pick that up.

 

what sector of Fixed Income exactly? Fibozzi is an intro/primer that covers many different asset classes.

Do you want Swaps, Treasuries, Futures, Mortgages, Inflation, Options, FX, etc....you need to be specific on what you want to learn...you can't just say "everything"

 

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