The Aleph Blog » Blog Archive » Where Can I Learn the Investment Math? The Bond Math?

Where Can I Learn the Investment Math? The Bond Math?

I was recently asked where to look for how to understand quantitative investing, fixed income, etc.  Let me try to explain.

I have reviewed in the past Investing by the Numbers (Frank J. Fabozzi Series).  This is a good book that covers a wide number of areas in quantitative investing without getting too technical.  I learned a lot from it, and I don’t think the lessons there are out of date.

As for Fixed Income, the main book is Handbook of Fixed Income Securities 7th Edition, edited by Frank Fabozzi.  Fabozzi gets practical experts to write for him and he edits the book so that it reads well.  The result is a readable book that gives all of the qualitative information about the market, but does not deliver the math.  That’s a good thing.  Most people don’t want the math.

But… what if you are a misfit like me who does want the math.  Where do you go? Buy the Theory of Interest.  And, don’t buy it new.  Buy it used, or get it through interlibrary loan.  Same for Fabozzi’s book.  Don’t overpay.  And, if you can understand it well, maybe you would like to become an actuary.  The actuarial profession has done many good things for me; maybe it will do so for you also.

I have learned a lot from all three of these books.  You can too.






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Bonds, Book reviews, Portfolio Management, Quantitative Methods | RSS 2.0 |

4 Responses to Where Can I Learn the Investment Math? The Bond Math?

  1. Steven Milos says:

    Hi David,

    You’re right, Fabozzi is a great, accessible read. But forgetting fixed income for a moment – Merry Christmas to you and your family, I hope that it’s a season full of joy and happiness for you.

    Steve

  2. brendo says:

    Thanks so much David! I’ll get em off your site links…but I think your more of a misfit..I may avoid the math one for a bit!
    Happy holidays

  3. TDL says:

    David,
    Thanks for the great timing of this post. I am researching the actuary path as I write. Warm wishes to you and your family.

    Regards,
    TDL

  4. Shiv Desai says:

    HI David,

    Thanks a lot for the guidance. Merry Christmas to you and your family. Have a great year ahead!!!

Disclaimer


David Merkel is an investment professional, and like every investment professional, he makes mistakes. David encourages you to do your own independent "due diligence" on any idea that he talks about, because he could be wrong. Nothing written here, at RealMoney, Wall Street All-Stars, or anywhere else David may write is an invitation to buy or sell any particular security; at most, David is handing out educated guesses as to what the markets may do. David is fond of saying, "The markets always find a new way to make a fool out of you," and so he encourages caution in investing. Risk control wins the game in the long run, not bold moves. Even the best strategies of the past fail, sometimes spectacularly, when you least expect it. David is not immune to that, so please understand that any past success of his will be probably be followed by failures.


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