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.


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Comments (17)

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May 19, 2020 - 8:46am

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.

  • Intern in S&T - Other
Jun 12, 2020 - 5:27pm

Hey there, Im interning with a structured credit/product desk covering assets like CDOs/CLOs, CSOs. Do you have any recommendation on the books? That would be much appreciated! Thank you.

May 19, 2020 - 2:26pm

Books by @eastofheaven" are all spot on - I might add "The Handbook of Fixed Income Securities" by Fabozzi (it's free online like everywhere.

TBH tho - read these books if you can, but don't overwhelm yourself, just go balls to the wall during the internship and get people to like you and you should be okay. S&T is a VERY "learn on the job" kind of thing.

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May 20, 2020 - 1:41pm

'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.

May 21, 2020 - 7:24am

With regards to the CDS/CDO's by far the best thing I've read is a thesis written by Harvard grad. Her name is A.K. Barnett-Hart, and most of the technical knowledge used in the 'Big Short by Lewis is taken from there. The paper is about 90 pages and if you go through it a couple of times you should be on top of that topic. You can find a pdf online.

  • Intern in S&T - Other
Jun 12, 2020 - 5:30pm

Hey there, Im interning with a structured credit/product desk in Credit. Do you have any recommendation on the books? That would be much appreciated! Thank you.

Jun 1, 2020 - 11:10am

just an addition on my side (EQD/Exotics) excluding what has been mentioned already:
Option volatility and pricing by Natenmberg
Trading Volatility by Bennet
Correlation and Volatility by Rebonato

I would say that these books have changed my way of understanding volatility and the financial world. Also, note that the latter requires good understanding of math/probability but if you understand the book you will have a great edge ;)

Jun 4, 2020 - 7:51am

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