Bestsellers

Interest Rate Risk in the Banking Book, written by industry expert Paul Newson, provides a thorough guide to the new regulatory requirements surrounding IRRBB and demonstrates the importance of good governance.

The author explains the nature of interest rate risks in simple language, describing the methods typically used to measure them, with the added advantage of many worked examples.  He explores the various strengths and weaknesses of each in order to come up with suggestions as to what constitutes best practice.

The book is essential reading for all those involved with interest rate risk in the banking book but particularly those working in a bank ALM function who wish to gain a wider appreciation of the context in which they operate, more generalist and senior bankers who need a grasp of the fundamentals and those working in a trading risk function who wish to understand how market risk in a banking book can differ from that in a trading book

Behavioural risk management studies the psychology of financial decision-making. Interest in behavioural risk has been growing specifically because investors rarely behave according to the assumptions made in traditional financial theory. Risk behaviour is a huge issue in finance and examples of this risk type can be found in the news on a near-daily basis.

From Mark Carney’s proposal to put a proportion of bankers' salaries at risk in case of misconduct, to the FX rigging scandal and payment protection insurance corruption revealed at Lloyds, focus on and interest in risk behaviour is growing exponentially. Investment professionals can no longer afford to ignore or fail to grasp the psychological motivations which can drive high-risk decision-making. People in the industry are realising that there is a benefit to understanding people, their emotions and their behaviour because it impacts every aspect of business.

Tail Risk Hedging is essential reading for investors who want to improve their understanding of this investment strategy and its role and place in institutional portfolios in order to choose successful asset allocation, portfolio construction and hedging strategies.

"The definitive source for any investor considering tail hedging. The expertise of writers (and editors!) shines through in every chapter. By showcasing the institutional users' frameworks to assess the role of tail hedging in their portfolios as well as a range of diverse solutions offered by major tail hedge providers, the book gives a comprehensive picture of the menu of possibilities, with pros and cons on each."

Antti Ilmanen, Principal at‎ AQR Capital Management.

This is the survival guide for trading in a world where high-frequency trading predominates in markets, accounting for upwards of 60% of trading in equities and futures, and 40% in foreign exchange. High-frequency trading is the subject of extensive debate, particularly as to whether it is beneficial for traders and markets or instead allows some traders to benefit at others expense. This book provides you with an important overview and perspective on this area, with a particular focus on how low-frequency traders and asset managers can survive in the high frequency world.

“The concept of high-frequency trading too often evinces irrational fears and opposition.  This book, by experts in the field, unveils the mysteries, records the facts and sets out the real pros and cons of such mechanisms.”

Charles Goodhart, Fellow of the British Academy, and Emeritus Professor at the London School of Economics.