S&T Literature/Books for Interns?

Curious to see what books are must-reads for SAs before they hit the desk, or even during the internship

Common recommendations I've found are John Hull's book on options and derivatives, and Fabozzi's handbook of fixed income securities

What other books are there that are readable and beneficial for interns? I'm specifically interested in corporate credit, distressed debt, equities, and hoping to learn more about derivs as well.

Cheers!

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eastofeden

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3y

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Hull should give you all you need on Derivatives especially on an intern level.If you want more, get Intro to Credit Derivatives by Choudhry. Distressed debt by Moyers is considered the bible on that topic. It's pricey, but you can find a pdf online. Mezzanine financing by Nijs and Private Debt by Nesbitt are solid reads on the credit side. If you have the time check Trading in the Zone by douglas, more behavioural but incredialy valuable.

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gamma-gladiator

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'Must Read' will be desk-dependent. In my experience, some good books are:

Dynamic Hedging by Taleb – more advanced derivatives topics, still apropriate for jr analysts
The Art of Currency Trading by Donnelly – gimmicky title, but good intro to directional fx trading
Derivatives Markets by McDonald – Good 'Derivatives for Dummies' type book if you are not quantitatively inclined
Options, Futures, and Other Derivatives by Hull – Derivatives bible. Good mix of intuition and analytic rigor
Distressed Debt Analysis by Moyer – Important if you are on a distressed desk. Very intuition-focused
Fixed Income Securities by Tuckman/Serrat – Hands-down the book I recommend to people going into fixed income. Builds on itself comprehensively. Will be a slow read if you are completely new to FI, but worth it.
Soly Yield Curve Series by Ilmanen – A classic which was influential at the time of publication. Must-read in rates.
Handbook of Fixed Income Securities by Fabozzi – This is a famous desk reference that covers a lot of products. I don't think it's that great a read for a comprehensive overview, but if you're confused by a type of security and don't want to bother colleagues with dumb questions, it can be good.
Interest Rate Swaps and Other Derivatives by Corb – Classic read on swaps. I would say it is a bit hindered by fact it was written in aftermath of GFC, as it does not include OIS discounting which has changed swaps pricing quite materially. Still, this was the book that helped me finally 'get' swaps in UG.
The Trader's Guide to Key Economic Indicators by Yamarone (RIP) – Great way to get a handle of the nuances of different data releases which move markets if you are working in macro.
The Volatility Smile by Derman – Primarily about equity derivatives models. Actually a quite enjoyable read, in my opinion. Introduces nuance surrounding the concept of implied volatility and efforts to grapple with the wonkier behavior of asset prices which complicate derivatives pricing. I read this after reading 'My Life as a Quant,' and (while I am not a quant, or even quant-adjacent!) I have a much better handle on the history of the models we use every day.
A Pragmatist's Guide to Leveraged Finance by Kricheff – Great no-nonsense introduction to leveraged credit. Will it teach you how to manage CDS basis trades or price structured credit products? No. But it takes you from 0 to 1 in understanding the ABC's of credit markets.
Various CDS Primers from Investment Banks – If you have access. Have not found any books which actually teach the nitty gritty of CDS. In UG I learned how default swaps work from Merrill's 2006 Primer, thought it was pretty good. Learned the basis from JPM handbook, and credit options from MS.

This only scratches the surface, but I have read and will vouch for these.