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This blog is produced by David Merkel CFA, a registered representative of Finacorp Securities as an outside business activity. As such, Finacorp Securities does not review or approve materials presented herein. By viewing or participating in discussion on this blog, you understand that the opinions expressed within do not reflect the opinions or recommendations of Finacorp Securities, but are the opinions of the author and individual participants. Neither the information nor any opinion expressed constitutes a solicitation for the purchase or sale of any security or other instrument. Before investing, consider your investment objectives, risks, charges and expenses. Any purchase or sale activity in any securities instrument should be based upon your own analysis and conclusions. Past performance is not indicative of future results. Finacorp Securities is a member FINRA and SIPC.

David Merkel

At my blog there are two main purposes: teaching investors about better investing through risk control, and tying all of the markets into a coherent whole.

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    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  I learned a lot from it, and I don’t think the lessons there are out of date.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.

    This entry was posted on Friday, December 25th, 2009 at 12:53 am and is filed under Bonds, Book reviews, Portfolio Management, Quantitative Methods. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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

    1. Steven Milos Says:
      December 25th, 20091:37 am at

      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:
      December 26th, 20091:04 pm at

      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:
      December 26th, 20095:36 pm at

      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:
      December 27th, 200911:47 pm at

      HI David,

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

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