Fixed Income Markets: Management, Trading and Hedging, 2nd Edition

Preface

The first edition of this book was published precisely 10 years ago. A lot has happened in the debt capital markets since then. The little matter of the global bank crash (in reality, the U.S. and Western European bank crash) had considerable impact, for starters. However fixed income instruments and their analysis have not materially changed from what readers of the first edition would have been familiar with. That said, there are always new things to talk about.

To begin at the beginning, we reprise this text from the Preface of the first edition:

The market in bond market securities, also known as the fixed income market, is large and diverse, and one that plays an important part in global economic development. The vast majority of securities in the world today are debt instruments, with outstanding volume estimated at over $23 trillion. In this book we provide a concise and accessible description of the main elements of the markets, concentrating on the instruments used and their applications.

Notwithstanding our second sentence, we have had to update a considerable segment of the original text. The book remains broken into four parts, covering introduction to bonds, selected market instruments, derivatives, and trading strategy. However, we have made the book more practical, even more practitioner based, and completely up to the minute. That’s why we changed the subtitle of the book from the original “Instruments, Applications, Mathematics” to the still more ...