The aim of the book

This book is a practical yet comprehensive guide on ‘how to hit the ground running’ in your financial markets career; covering major product classes, their trading motivation and strategies, pricing techniques and risk management. It is the answer to the age-old problem each new entrant to the financial markets is facing: how to get ahead of the fierce competition? The answer is simple: get to know ‘the big picture’, i.e. understand the investment banking structure, divisions and businesses and gain as much knowledge on the products, their risks and benefits, pricing methodologies and trading strategies. As bookshop shelves are filled with books on banking, investments, financial markets, derivative securities, pricing methodologies etc. one would assume that the above is an easy task. All you need to do is buy a book and spend some time studying. The only problem is, there isn’t a single book that covers all of the above. Unless you are prepared to buy a dozen books and then sift through the myriad of information, you are destined for failure. This book is the solution. It is a comprehensive manual on the full range of issues encountered in daily jobs of workers in the financial industry. It provides enough information on all the topics, without overwhelming the readers with details that are needed by only a few specialists. It offers a well-structured and practical source you can come back to time and time again as you progress in your career.

Within these covers you will find all the knowledge that market practitioners need for a successful investment banking career in a single volume. It is a practical guide to the major product classes, their trading motivation and strategies, pricing techniques and risk management. Important fundamental concepts on statistics, yield curves and quantitative modelling are also covered.

This book should be an interesting and easy read (save for some more complex formulae) to many people interested in world economy and finance. However, it is primarily aimed at financial institutions employees, university staff and students and many others who will benefit from solid knowledge of the investment banking industry and financial products. Programmers, dealers, risk managers, company directors, investors and other market practitioners who were not overjoyed at the prospect of solving differential equations in school will find that this book provides an excellent grounding on all aspects of financial markets. It is an essential guide to financial markets for the new entrants to the industry. Graduates of all backgrounds starting their first job in investment banking often get a list of recommended books to read to prepare them for their new career. I should know, as I was one of them. After obtaining my PhD in Nuclear Biophysics I accepted a job in the City without much knowledge of investment banking and finance in general. I found the recommended reading quite complex, without providing that much-needed ‘big picture’ on what it was all about. So this book represents all the fact that I wish I could have read in a single book when I first started out.

All classes of investment products are covered, with a strong emphasis on those financial instruments mostly traded in the world markets. The fundamental pricing concepts are also included, without the need for the complex mathematics. This was done deliberately, as many readers would be discouraged rather than helped by too much detail, unnecessary for most investment banking jobs.

This book was conceived as a complete, stand-alone, financial markets manual. Those wishing to grasp the ‘big picture’ should feel well-equipped upon reading it. But it is also a very useful introduction to further study of specific topics.