Best Books / Materials on Financials Sector

I have been covering fins for a short time and want to develop a deeper understanding of capital requirements (CET1 etc.), Basel III, mortgage servicers, specialty lending (subprime auto/consumer etc.). I feel that far too often I find myself ChatGPT/Googling things, but struggle to retain the information because I am not learning from the ground up. I understand the subsectors I have highlighted are quite disparate and there is no all-encompassing book, but any suggestions would be much appreciated. 

5 Comments
 

To deepen your understanding of the financials sector, including capital requirements, Basel III, and specialty lending, here are some highly recommended books and materials based on the most helpful WSO content:

  1. "Valuation on Financial Institution Companies"

    • A detailed but tedious book that provides a comprehensive understanding of financial institutions' valuation. It's a great resource for learning the intricacies of capital requirements like CET1.
  2. "Fisher Investments on Financials"

    • A practitioner-focused book that offers insights into the financial sector, including banks, mortgage servicers, and specialty lending.
  3. "Manmohan Singh, Collateral Markets and Financial Plumbing (3rd Edition)"

    • This book dives into the global collateral markets and Basel III regulations. It's technical and dense but provides a deep understanding of the financial plumbing and regulatory frameworks.
  4. "Global Money Notes" and "Global Money Dispatches" by Zoltan Pozsar

    • A series of advanced notes that cover topics like Basel III, collateral systems, and the broader monetary system. These are highly recommended for those with a foundational understanding of the basics.
  5. "The Fed and Lehman Brothers" by Lawrence Ball

    • A historical perspective on financial crises and regulatory responses, which can help contextualize Basel III and capital requirements.
  6. "The Trader's Guide to Key Economic Indicators" by Yamarone

    • While more macro-focused, this book helps understand the nuances of economic data releases that impact financial institutions and lending markets.
  7. LSTA's Complete Credit Agreement Guide

    • A comprehensive reference for understanding credit agreements, syndicated loans, and related topics, which are crucial for specialty lending.
  8. "Loan Workouts and Debt for Equity Swaps"

    • A short but insightful book that provides an overview of processes relevant to distressed lending and specialty finance.

These resources will help you build a strong foundational knowledge and retain information more effectively. Start with the basics and gradually move to more advanced materials like Zoltan Pozsar's notes or Manmohan Singh's work.

Sources: 1st Year Macro HF Analyst: My Macro Framework, Working in FIG (Financial Institutions Group) - An Overview., S&T Literature/Books for Interns?, Alternative Lenders & the End of Risk Taking for Banks - Opportunity or Risk?, https://www.wallstreetoasis.com/forum/asset-management/what-are-the-best-books-on-credit-investing?customgpt=1

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 

Have found some decent primers through the Banks that cover fins from ground up but if you really want a deep dive I think Moorad Choudhry has some great books. He’s more of an academic type, principles of banking is a title that does a great job from a practitioners pov and would help get you up to speed fast on regulatory and liquidity requirements. Also provides some understanding as to how a management team at a bank should approach risk

 

When you say primers "through the banks" are those things that you think I can request from our sell-side coverage (I am on the buy-side at an institution not affiliated with a bank)? Or did you just find them online and they were titled GS/MS/JPM whatever on top? Thanks for the recommendation on Choudhry, I have read one of his books on another topic and will certainly check out Principles of Banking. 

 

Yeah you can request through your sales coverage, just IB them to request access to their portal. Can send you a few primers too, PM and I can send your way

 

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